Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (10) TMI 780 - AT - Income TaxJurisdiction of CIT to invoke section 263 – Assessment order passed by AO erroneous and prejudicial to the interests of revenue or not – Held that:- As decided in Malabar Industries Co. Ltd. vs. CIT [2000 (2) TMI 10 - SUPREME Court] - this is not a fit case for revising the assessment order - the twin conditions, viz., the assessment order should be erroneous in so far as it is prejudicial to the interests of revenue do not co-exist in this case - The assessee had filed return of income and had disclosed the same during the relevant year, alongwith entire requisite details - the AO has made proper enquiries during the assessment proceedings and after examining the proofs so filed by the assessee before him, has made disallowance on being satisfied with the explanation of the assessee - The provision cannot be invoked to correct each and every type of mistake or error committed by the Assessing Officer, it is only when an order is erroneous that the section will be attracted - The phrase “prejudicial to the interests of the Revenue” has to be read in conjunction with an erroneous order passed by the AO - the assessment framed by the AO was not erroneous and prejudicial to the interests of revenue so as to attract the proceedings u/s. 263 – thus, the order of the CIT(A) is set aside and the assessment order is restored – Decided in favour of assessee.
|