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2017 (11) TMI 1755 - HC - Income TaxRevision u/s 263 - AO erred in determining the income of the assessee at 10% on estimate basis in respect of godown receipts and hence, directed the AO to redo the assessment by assessing the godown receipts separately in addition to the income from contract receipts - Held that:- Hon' Supreme Court in Malabar Industrial Co. Ltd. v. CIT (2000 (2) TMI 10 - SUPREME COURT) had held that the AO, on appraisal of the facts and particularly, taking into consideration the undisputed fact that the books were not maintained by the assessee, had adopted the method of estimation of the income and in the process, after taking into consideration the overall material before it, had estimated the income at 7.5% of the gross receipts. The view taken by the AO being a plausible one and even assuming there was another view possible, the CIT(Appeal) could not have invoked the revisional power under Section 263 of the Act, as it is well-settled that such ground is not available for revising the orders. In coming to this conclusion, the Tribunal had examined the material on record and did not accept the argument of the Revenue that the rentals from the godowns are required to be assessed at a higher rate of 12.5%. AO had opined that renting of the godowns is integral in the business of the assessee and as the decision arrived at by the Tribunal being on appreciation of facts and the reason for invocation of Section 263 being that there is a possibility for estimating the income at a higher rate, without there being a finding of error in the Assessment Order, a resort to Section 263 of the Act cannot be made. Decided in favour of the assessee and against the Revenue.
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