Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (5) TMI 259 - AT - Income TaxRevision u/s 263 - deduction u/s 80IB(A) had not been properly examined by the AO as there is payment of rent also - whether the order passed by the A.O. can be said to be erroneous or prejudicial to the interest of revenue? - HELD THAT:- In the reassessment order passed, the issue had been duly examined and on the basis of the examination of the relevant records and the application of law, one of the possible opinion had been drawn by the A.O., which cannot be said to be erroneous so far as prejudicial to the interest of revenue. Hon’ble Supreme Court in the case of Malabar Industrial Co. Ld. Vs CIT [2000 (2) TMI 10 - SUPREME COURT] observed that “Section 263 of the Income Tax Act, 1961, makes it clear that the prerequisite for the exercise of jurisdiction by the Commission suo moto under it, is that the order of the Income Tax Officer is erroneous in so far as it is prejudicial to the interests of the revenue. Even if one of them recourse cannot be held to Section 263(1) - A.O. after going through the material on record and after considering the explanation of the assessee, had applied his mind. His view was that the amendment are not applicable in the case of the assessee for the year under consideration which is a possible view. Section 263 of the Act does not empower him to take action on these facts to arrive at the conclusion that the order passed by the ITO is erroneous and prejudicial to the interest of the revenue. Since the material was there on record and the said material was considered by the ITO and a particular view was taken, the mere fact that different view can be taken, should not be the basis for an action U/s 263 of the Ac and it cannot be held to be justified. - Decided in favour of assessee.
|