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2019 (12) TMI 1309 - AT - Income TaxRevision u/s 263 - Assessment u/s 153A - revision proceedings in PCIT’s order under challenge on the ground that the AO has wrongly accepted the assessee’s section 54 & 54F deduction claim - HELD THAT:- PCIT’s assumption of revision jurisdiction. Hon’ble apex court’s landmark decision in Malabar Industries Co. vs. CIT [2000 (2) TMI 10 - SUPREME COURT] holds that before an assessment is sought to be revised in proceedings u/s 263 of the Act, the same has to be erroneous as well as caused prejudice to interest of the Revenue; simultaneously. An assessment cannot be termed as erroneous causing prejudice to interest of the Revenue in case the AO adopts one of the possible view. Reverting back to impugned regular assessment, we notice that the Assessing Officer had claimed yet another regular assessment on 30.11.10 invoking section 153A/143(3) proceedings whilst assessing the total income of ₹ 18,62,400/- only. That being the case, it is sufficiently clear that the impugned second assessment dated 25.12.16 pertained to the search dated 05.08.14 only qua the alleged incriminating material found/seized. It emerges from the case records that the assessee had claimed the impugned section 54 and 54F deduction relief at the first instance in former assessment. This issue nowhere formed subject matter of deduction in the latter assessment therefore. Since the AO could not have even taken up the assessee’s above deduction claim during latter assessment, the PCIT has erred in law and on facts in terming the same as erroneous causing prejudice to interest of the Revenue. We therefore restore the Assessing Officer’s regular assessment dated 25/30.12.16 and reverse the PCIT’s revision directions under challenge. - Decided in favour of assessee.
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