Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (12) TMI 1377 - AT - Income TaxRevision u/s 263 - Held that:- In order to invoke the provision of section 263 of the Act, the order passed by the AO has to be erroneous and prejudicial to the interest of the revenue. Whereas in the present case the order is not erroneous nor prejudicial. The AO had called for details from the assessee in respect of Manglad Flash Flood claim and after considering the reply filed by the assessee allowed and accepted the treatment given to disputed claim in respect of Manglad Flash Flood which had been accepted for the assessment year 2007-08. The order is also not prejudicial to the interest of the revenue as the assessee itself offered the amount of claim of Manglad Flash Flood in the assessment year 2011-12, when the claim attained finality and thus, no prejudice was caused to the revenue. In the case of CIT Vs. Greenworld Corporation [2009 (5) TMI 14 - SUPREME COURT OF INDIA] held that an order of Assessment passed by an ITO should not be interfered with only because another view is possible. Similarly in the case of CIT Vs. Max India Limited 2007 (11) TMI 12 - Supreme Court of India & Malbar Industries Co. Ltd. Vs. CIT (2000 (2) TMI 10 - SUPREME Court ) the Supreme Court has laid down the principle that when the Assessing Officer taken one of the two views permissible in law and which the Commissioner does not agree with and which results in a loss of revenue, it cannot be treated as erroneous order prejudicial to the interest of revenue, unless the view taken by the Assessing Officer is completely unsustainable in law. Considering the facts of the assessee and respectfully following the ratio laid down in various judgemenets (supra) we are of the considered view that the assessment order is neither erroneous nor prejudicial to the interest of the revenue and therefore, the order passed by the CIT u/s 263 is annulled/cancelled. - Decided in favour of assessee
|