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2023 (6) TMI 805 - AT - Income TaxRevision u/s 263 - carry forward of losses on sale of shares - HELD THAT:- CIT has wrongly assumed jurisdiction on wrong facts in as much as, as mentioned elsewhere, the assessee has made its intention very clear in the notes to computation of income wherein it has specifically mentioned and clarified that the assessee is not inclined to claim the carry forward of losses on sale of shares. We are of the further opinion that the ld. CIT proceeded on the premise that the assessee is a newly incorporated company which has been incorporated solely for tax evasion purposes, without realizing that the assessee is in this line of business since 2010, holding a valid tax residency certificate with a global business license issued by the assessee Financial Services Commission in Mauritius. CIT has proceeded on the assumption that the assessee is not entitled for any treaty benefit for taxation of capital gain in India. The ld. CIT has clearly ignored the fact the assessee has neither claimed nor carried forward such capital loss in its return of income filed in India. It is a settled position of law that powers u/s 263 can be exercised by the Commissioner on satisfaction of twin conditions, i.e., the assessment order should be erroneous and prejudicial to the interest of the Revenue. By 'erroneous' is meant contrary to law. Thus, this power cannot be exercised unless the Commissioner is able to establish that the order of the AO is erroneous and prejudicial to the interest of the Revenue. Thus, where there are two possible views and the Assessing Officer has taken one of the possible views, no action to exercise powers of revision can arise, nor can revisional power be exercised for directing a fuller enquiry to find out if the view taken is erroneous. This power of revision can be exercised only where no enquiry, as required under the law, is done. It is not open to enquire in case of inadequate inquiry. Appeal under consideration, the ld. CIT called for valuation report in revisionary proceedings. However, when the valuation reports were filed by the assessee, CIT chose to set aside the entire matter back to the file of the AO without appreciating that it was incumbent upon CIT to himself examine the valuation reports and verify as to how the case of the assessee was erroneous and prejudicial to the interest of the Revenue following the ration laid down in the case of the Delhi Airport Metro Express [P] Ltd [2017 (9) TMI 529 - DELHI HIGH COURT] We set aside the order of the ld. CIT and restore that of the Assessing Officer dated 09.12.2019 framed u/s 143(3) of the Act. Decided in favour of assessee.
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