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2023 (10) TMI 835 - AT - Income TaxRevision u/s 263 - CIT has opined that AO has also failed to verify assessee’s claim of royalty expenses - HELD THAT:- The principal of the law emanating that when two views are legally possible and AO adopts one view the Assessment Order cannot be said to be erroneous for the CIT to invoke jurisdiction u/s 263. In this case the AO has taken one of the possible Legal View. Hence, the Assessment Order is not erroneous and prejudicial to the interest of the revenue. In this case, the ld.Pr.CIT though has discussed in the order u/s. 263 of the Act, the Order of the ITAT for earlier years in the case of the assessee on the impugned issues, errored in taking a divergent view. CIT is a quasi- judicial authority, and hence the ld.Pr.CIT is duty bound to follow the Judicial Precedence. Merely, because the Department has filed an appeal before the Hon’ble High Court does not give an authority to the ld.Pr.CIT to take a divergent view. See Union Of India And Others Vs Kamlakshi Finance Corporation [1991 (9) TMI 72 - SUPREME COURT] Thus we are of the opinion that the order u/s 263 is not sustainable in law, hence it is set aside. Accordingly, grounds of appeal raised by the assessee are allowed.
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