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2022 (1) TMI 481 - AT - Income TaxRevision u/s 263 by CIT - Nature of receipt - amount received on cancellation of the long-term lease right - compensation received for cancellation of rights under the lease agreement - Revenue or capital receipt - HELD THAT:- When the subject matter of the lease constitutes the source of profit-making to the assessee and any compensation received for cancellation of such rights, it would impact the profit-making capacity of the assessee and therefore, falls in the domain of capital receipt and not a Revenue receipt. Going by such rule it is clear that in this case it cannot be said that the assessee was wrong in offering such proceeds to tax under the head "capital gains" or the learned Assessing Officer accepting the same as something erroneous. It could be seen from the record that in the assessment order the assessing officer had stated that the details filed in respect of various items called for and were examined before accepting the returned income of the assessee. Assessing Officer applied his attention to this particular receipt and having called for the details on this aspect and by perusing them he accepted the same. In the preceding paragraphs it is held that the view taken by the learned Assessing Officer is certainly one of the several plausible views. In this context, it is worth the referring to the decision of the Hon'ble Apex Court in the case of CIT vs. Max India Ltd. [2007 (11) TMI 12 - SUPREME COURT] wherein it was held that where two views are possible and the learned Assessing Officer had taken one such view, with which the learned CIT does not agree, it cannot be treated as an erroneous order prejudicial to the interest of the Revenue, unless the view taken by the learned Assessing Officer is unsustainable in law. Non-agreement of the Ld. PCIT with the view taken by the learned Assessing Officer, unless such a view of the learned Assessing Officer is unsustainable in law, does not afford any ground to the Ld. PCIT to revise the impugned assessment order. Accordingly, we find it difficult to sustain the order passed by the Ld. PCIT under section 263 - Decided in favour of assessee.
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