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2021 (12) TMI 758 - AT - Income TaxRevision u/s 263 by CIT - reopening of assessment u/s 147 - revenue accrued but deferred by the Assessee and not offered to tax and consequently there was loss to the revenue - HELD THAT:- There was no prejudice or loss to the revenue whatsoever when the show cause notice u/s.263 of the Act, dated 22.1.2016 was issued by the CIT and when the CIT passed the impugned order dated 11.3.2016. The alleged loss of revenue to the tune of ₹ 216,89,00,773/- has already been brought to tax by the revenue in the order dated 30.3.2015 in the reassessment proceedings. Hon'ble Karnataka High Court in the case of V. G. Krishnamurthy [1984 (3) TMI 28 - KARNATAKA HIGH COURT] has held that Section 263 can be invoked by the Commissioner only when he prima facie finds that the order made by the ITO was erroneous and was prejudicial to the interests of the revenue.Both these factors must simultaneously exist. An order that is erroneous must also have resulted in loss of revenue or prejudicial to the interests of the revenue. Unless both these factors co-exist or exist simultaneously, the Commissioner cannot invoke or resort to section 263. It cannot be exercised to correct every conceivable error committed by an ITO. Before the suo moto power of revision can be exercised, the Commissioner must at least prima facie find both the requirements of section 263, namely, that the order sought to be revised is prima facieerroneous and prejudicial to the interests of the revenue. If one of the other factor was absent, the Commissioner cannot exercise the suo moto power of revision under section 263. We are of the view that the impugned order u/s.263 of the Act is liable to be quashed and is hereby quashed. - Decided in favour of assessee.
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