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2017 (4) TMI 1028 - AT - Income TaxRevision u/s 263 - order prejudicial to the interest of Revenue or not - Held that:- As seen the paper book filed by the assessee and the documents/papers contained/mentioned therein were duly made available before the Assessing Officer, before framing the assessment u/s. 143(3) of the Act and are satisfied that he asked the assessee to furnish the necessary details, therefore, the observation made by the ld. Commissioner is not substantiated as has been alleged in the revisional order. Admittedly, an incorrect assumption of fact or an incorrect application of law would satisfy the requirement of order being erroneous u/s. 263 of the Act. The phrase “prejudicial to the interest of the Revenue” u/s. 263 of the Act, has to be read in conjunction with the expression “erroneous” order by the Assessing Officer. Every loss of Revenue as a consequence of assessment order cannot be termed as ‘prejudicial to the interest of Revenue’, meaning thereby, “prejudice” must be prejudice to the Revenue administration. At the same time, if another view is possible revision is not permissible. Totality of facts, clearly indicates that assessment u/s. 143(3) of the Act was framed by the Assessing Officer after obtaining necessary details from the assessee and further the same were examined by him. Therefore, even if, the same has not been spelt elaborately in the assessment order it cannot be said that there is a ‘lack of enquiry’ or ‘prejudice’ has been caused to the Revenue, as we have discussed various case laws in earlier part of this order which are identical to the facts before us. Our view is further fortified by the decision of Mumbai Bench of the Tribunal (wherein one of us i.e. JM is signatory to the order ) in the case of Mehta Trading Company (2014 (11) TMI 292 - ITAT MUMBAI) which is also on identical facts/issue. The Commissioner invoked revisional jurisdiction u/s 263 with respect to commission of ₹ 2,12,136/- at the rate of ₹ 25 per piece to Rajendra Jain and Kiran Jain by observing that no such commission was paid in earlier year for similar sales. The assessee explained that commission was paid to these parties for looking after the logistic issue. We find that the assessee vide letter dated 11/07/2011, addressed to the Ld. DCIT, in response to notice u/s 142(1) clarified the factual matrix and again vide letter dated 26/07/2011 addressed to Ld. DCIT duly furnished the partywise details of commission paid with name, address and purpose (all these documents are available in the paper book of the assessee). The zerox copy of agreement and credit note was also enclosed along with the memorandum of understanding dated 10/04/2008. Thus, we are satisfied that the assessment was framed after making due enquiry and on perusal/examination of documentary evidence. In such a situation, invoking revisional jurisdiction u/s 263 cannot be said to be justified. - Decided in favour of assessee
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