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2020 (11) TMI 167 - AT - Income TaxRevisionary proceedings u/s 263 - Assessment was reopened u/s 147 to the effect that assessee is beneficiary of bogus hawala purchases - PCIT has exercised the revisionary jurisdiction on the ground that AO has not correctly assessed the income from bogus purchases - HELD THAT:- Debatable issue on which more than one plausible views are reasonably possible and if the AO has taken one possible views it can not be said that assessment is erroneous and prejudicial to the interest of the Revenue. In the case of CIT vs. Nirav Modi [2016 (6) TMI 1004 - BOMBAY HIGH COURT]which has been passed after considering the decision of the Hon'ble Apex Court in the case of Malabar Industries Company Ltd. [2000 (2) TMI 10 - SUPREME COURT] wherein it has been held that in order to invoke the revisionary jurisdiction the twin conditions have to be satisfied namely (i) the assessment order should be erroneous and (ii) also prejudicial to the Revenue. The Hon’ble Court has held that where two views are possible and AO has taken one of the possible views there is no occasion to invoke the provision of section 263 even the Hon’ble Supreme Court has dismissed the SLP filed by the Revenue against this decision in CIT vs. Nirav Modi [2016 (12) TMI 1596 - SC ORDER] - Therefore, we are not in concurrence with the conclusion of the Ld. PCIT on this issue - Decided in favour of assessee.
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