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2019 (1) TMI 2010 - AT - Income TaxRevision u/s 263 - As per CIT assessee was allowed deduction u/s 35AD by the AO without proper verification whether orders passed u/s 143(3) are erroneous in so far as it is prejudicial to the interest of the Revenue? - HELD THAT:- It is settled law that to revise an assessment order, the CIT should be satisfied that the order of the A.O. is erroneous in so far as it is prejudicial to the interest of the Revenue. We find that during the proceedings u/s 263 of the Act, the assessee has filed all the details before the CIT, but he has failed to consider the same. Without bringing on record as to how the non-consideration of the claim u/s 35AD has caused prejudice to the interest of revenue, he has remitted the matter to the file of the A.O with a direction to re-do the assessment after examining the claim u/s 35AD in detail. Therefore, according to us, the CIT has failed to fulfil the twin conditions u/s 263 of the Act for making the revision. The Hon’ble Madras High Court in the case of CIT vs. G.R. Tangamaligai [2002 (10) TMI 73 - MADRAS HIGH COURT] has held that in the absence of any finding that there is loss of revenue, interference u/s 263 is not justified. Hon’ble Delhi High Court in the case of ITO vs. D.G. Housing Projects Ltd [2012 (3) TMI 227 - DELHI HIGH COURT] has held that the Commissioner cannot remand the matter to the Assessing Officer to decide whether the finding recorded are erroneous without a finding that the order is erroneous and how that is so. Commissioner has not examined and decided as to how the order is prejudicial to the interest of revenue but has directed the Assessing Officer to decide the aspect, which is not permissible. Decided in favour of assessee.
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