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2015 (9) TMI 171 - AT - Income TaxRevision u/s 263 - Held that:- For bank charges paid of ₹ 8363/-. The amount is nominal and ld. AO has examined the details of bank reconciliation with bank charges. Therefore, on this point, we do not find the order of AO erroneous and prejudicial to the interests of the revenue. But commission payment, quantitative details and interest issue had not been examined by the AO after calling the partial details and there is no application of mind before allowing the same. It is fact that assessee is a commission agent and wholesale general merchant of grains. However, the commission claimed to be paid to M/s. Rajesh Pipe Centre, Madurai who is dealing in MS, GI and PVC pipes. Further, in quantitative details, there was a discrepancy in assessment record which has not been verified by the AO during the assessment proceedings which is also lack of application of mind. Similarly, no interest has been charged by the assessee on loans given to Shri Jagdish Meena but the AO has collected the information from the assessee and simply put on record which also shows that AO had not applied his mind on it. Malabar Industrial Co. Ltd. case(2000 (2) TMI 10 - SUPREME Court) squarely applies wherein held that the scheme of the Act is to levy and collect tax in accordance with the provisions of the Act and this task is entrusted to the Revenue. If due to an erroneous order of the Income-tax Officer, the Revenue is losing tax lawfully payable by a person, it will certainly be prejudicial to the interests of the Revenue. The phrase “ prejudicial to the interests of the Revenue” has to be read in conjunction with an erroneous order passed by the Assessing Officer. Every loss of revenue as a consequence of an order of the Assessing Officer, cannot be treated as prejudicial to the interests of the Revenue, for example, when an Income-tax Officer adopted one of the courses permissible in law and it has resulted in loss of revenue, or where two views are possible and the Income-tax Officer has taken one view with which the Commissioner does not agree, it cannot be treated as an erroneous order prejudicial to the interests of the Revenue unless the view taken by the Income-tax Officer is unsustainable in law. The ld. CIT had set aside the order of the AO on certain issues for making proper enquiry and allow the adequate opportunity of being heard to the assessee on issues set right in the order itself. Accordingly we allow the assessee’s appeal partly as discussed in the paras above. - Decided partly in favour of assessee.
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