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2018 (11) TMI 1108 - AT - Income TaxRevision u/s 263 - allowance of amortisation of ESOP expenses - rectification proceedings u/s 154 initiated - Held that:- AO has not discussed the issue of ESOP at the time of original assessment proceedings, however, in the proceedings initiated under section 154 the assessing officer after examining the details of ESOP discount was satisfied and not disallowed it, being allowable expenses and the assessing officer has taken a possible view. Though, AO has not communicated his order, it should have been communicated to the assessee or the ld. PCIT ought to have confirmed from the assessing officer of his finding on proposed action initiated under section 154, before proceeding further in the matter. Hence, in our view the order passed by assessing officer is not erroneous and therefore the twin condition as enunciated under section 263 are not fulfilled. No revision under section 263 was warranted, on the facts of present case, when the assessing officer on the basis of the material available before him initiated action under section 154 and after examining the issue made no disallowance and taken a possible view in accordance with the law. It is settled law that every loss of revenue as a consequence of a view taken by the Assessing Officer cannot be treated as prejudicial to the interest of the revenue - where two views are possible and the Income-tax Officer has taken one view with which the Commissioner (PCIT) does not agree, it cannot be treated as an erroneous order prejudicial to the interest of the revenue, unless the view taken by the Income-tax Officer is unsustainable in law. - Decided in favour of assessee.
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