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2017 (12) TMI 1339 - AT - Income TaxRevision u/s 263 - order prejudicial or erroneous to the interest of revenue - Held that:- Except stating that the assessee has not furnished any details before the Assessing Officer, the Assessing Officer without conducting proper investigation and without proper application of mind accepted the claims of the assessee and therefore order is erroneous and prejudicial to the interest of the Revenue, the Ld.PCIT could not demonstrate or give proper reasons as to how the Assessment Order passed by the Assessing Officer is erroneous and prejudicial to the interest of the Revenue. PCIT has failed to show that the impugned Assessment Order passed by the Assessing Officer was not only erroneous but also prejudicial to the interest of the Revenue. It is an established proposition of law that both the conditions i.e. erroneous and prejudicial to the interest of the Revenue are required to be satisfied for invoking the provisions of section 263 of the Act. In the instant case we are of the view that the Ld.PCIT has failed to show that both the conditions exist. In the circumstances we find merit in the contentions of the assessee that the revision order passed by the Ld.PCIT for the year under consideration is beyond the scope of section 263 and hence not valid. In the circumstances we set-aside the order of the Ld.PCIT and allow the grounds of the assessee.
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