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2021 (10) TMI 724 - AT - Income TaxRevision u/s 263 - Mismatch in the turnover/ contract receipts - As per assessee there was no undisclosed turnover/ receipts as alleged by the AO on the basis of wrong figures shown in the Service Tax Returns and the turnover as declared in the income tax return was correct - HELD THAT:- As consistent view has been taken by the Courts that undisclosed turnover cannot be achieved without incurring corresponding purchases/expenses and, therefore, what can be treated as the income of the assessee is the profit element embedded in the undisclosed turnover/ receipts and not the entire amount of undisclosed turnover/ receipts. This view consistently taken in the various judicial pronouncements cited by the ld. Counsel for the assessee clearly shows that the view taken by the AO while bringing to tax the profit element embedded in the undisclosed turnover/ receipts in the hands of the assessee was a possible view and it was not permissible for the ld. Principal CIT under section 263 to substitute his own view with the possible view taken by the Assessing Officer. As held by the Hon’ble Delhi High Court in the case of CIT –vs.- Honda Siel Power Products Limited [2010 (7) TMI 38 - HIGH COURT OF DELHI] in cases, where the Assessing Officer adopts one of the courses permissible in law, or where two views are possible and the Assessing Officer has taken one of the possible views, the Commissioner cannot exercise his powers under section 263 to differ with the view of the Assessing Officer. Keeping in view this proposition and having regard to the facts of the case, we hold that there was no error in the order of the Assessing Officer under section 143(3) as alleged by the ld. Principal CIT - Decided in favour of assessee.
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