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2015 (11) TMI 1744 - HC - Income TaxRevision u/s 263 - Held that:- Appellate Commissioner, vide its order dated 01.03.2006, has, after considering the evidence, accepted the status of the assessee to be that of non-resident Indian and thus, gave a categorical finding that the consultancy fees earned outside India would thus become non-taxable. The filing of certificate under Section 80RRA of the Act was not found to be relevant in view of the non-taxability of the consultancy fees. A categorical finding of fact was recorded b y the Appellate Commissioner that “the fact remains that the consultancy fees received by the appellant is earned outside India” This finding of fact has not been challenged by the revenue in appeal. The order of the Assessing Officer passed on 11.01.2005 had merged with the order of the Appellate Commissioner dated 01.03.2006. Once such a categorical finding of fact has been recorded, and a conclusion arrived at by the Appellate Commissioner with regard to the consultancy fees having been received by the assessee, which was earned outside India, we are of the view that the same would be a concluded finding of fact, which could be set aside only in an appeal, if the said order was challenged before the Tribunal. Reasoning is a process of conclusion, and once such a conclusion has been arrived at and had become final, the same could not be upset by invoking the provisions of Section 263 of the Act, which could only be invoked, if the order of the Assessing Officer was erroneous insofar as it was prejudicial to the interest of the revenue. In the present case, the order passed by the Assessing Officer could not be said to be in any way prejudicial to the interest of the revenue, as the findings were all given in favour of the revenue, which may have been set aside by the Appellate Commissioner, for the reasons given in the appellate order, which had become final, as the same was not challenged in further appeal by the revenue. Invoking of the revisional powers under Section 263 by the Commissioner of Income Tax (International Taxation) was wholly without jurisdiction - Decided in favour of assessee
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