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2023 (2) TMI 334 - AT - Income TaxRevision u/s 263 - assessee had received an amount from the investment in property and the same is required to be taxed in the year of receipt i.e. A.Y. 2014-15 - Whether amount should be taxable in assessment year 2013-14 or in assessment year 2014-15, and tax rate in both the assessment years are same, whether there is loss to the Revenue? - HELD THAT:- In order to invoke the jurisdiction under section 263 of the Act, two conditions should be satisfied viz: (1) order passed by the Assessing Officer should be erroneous and (2) prejudicial to the interest of Revenue. We note that Assessing Officer taxed the disputed amount of Rs.9,00,000/- in assessment year 2013-14 instead of assessment year 2014-15, therefore order passed by the Assessing Officer is erroneous - since in both the assessment years 2013-14 and 2014-15 tax rate was same, therefore order passed by the AO should not be prejudicial to the interest of Revenue, (as there is no loss to the Revenue). Hence, one of the conditions (prejudicial to the interest of Revenue) is not getting satisfied in the assessee`s case under consideration. Therefore, we note that the issue raised by Ld.PCIT is revenue neutral, as it does give loss to the Revenue. Since one of conditions is that order should be prejudicial to the interest of revenue, which is absent in assessee’s case under consideration. We note that although the order passed by the Assessing Officer is erroneous because the right income should be taxable in right assessment year however, since the tax rates are same in assessment year 2013-14 and 2014-15 therefore, we note that there is no loss to the Revenue. Considering the smallness of amount and considering the fact that tax rate in both the assessment years are same, hence there is no loss to the Revenue, (one of the conditions is not satisfied to invoke jurisdiction u/s 263) therefore, we do not instruct the Assessing Officer to tax the impugned amount of Rs.9,00,000/- in assessment year 2014-15, as no any useful purpose would be served and it would be unnecessary burden on the Assessing Officer to make the compliance to tax the disputed amount Rs.9,00,000/- in assessment year 2014-15. Decided in favour of assessee.
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