TMI Blog2011 (3) TMI 850X X X X Extracts X X X X X X X X Extracts X X X X ..... l amount i.e. Rs. 1,05,970 - Held that the order passed by the ld. CIT under section 263 squarely falls outside the purview of section 263 of the Act and accordingly the same is cancelled - Decided in favour of assessee. - IT APPEAL NO. 6690 (MUM.) OF 2008 - - - Dated:- 25-3-2011 - D.K. AGARWAL, J. SUDHAKAR REDDY, JJ. Keshav Bhujle for the Appellant. Rajeev Agarwal for the Respondent. ORDER D.K. Agarwal, Judicial Member. This appeal preferred by the assessee is directed against the order dated 24-9-2008 passed by the ld. CIT under section 263 of the Income-tax Act, 1961 (the Act) for the assessment year 2006-07. 2. Briefly stated facts of the case are that the assessee company is engaged in the business of proje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et aside the assessment with certain directions. 3. Being aggrieved by the order of the ld. CIT, the assessee is in appeal before us challenging in all the grounds the initiation of the proceeding under section 263 and setting aside the assessment. 4. At the time of hearing, the ld. counsel for the assessee at the outset submits that the Assessing Officer in the light of the directions given by the ld. CIT has completed the assessment vide order dated 14-12-2009 passed under section 143(3) of the Act on the same income i.e., at Rs. 1,05,970 which was assessed originally, therefore, the order passed by the ld. CIT under section 263 is liable to be cancelled. 5. On the other hand, the ld. D.R. supports the order of the ld. CIT passed un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the Income-tax Officer is erroneous but it is not prejudicial to the revenue or if it is not erroneous but is prejudicial to the revenue recourse cannot be had no section 263(1) of the income-tax Act." Their Lordships after considering the decision in the case of CIT v. Max India Ltd. [2007] 295 ITR 282/[2008] 166 Taxman 188 (SC) wherein the Hon'ble Apex Court has explained its earlier decision in Malabar Industrial Co. Ltd. v. CIT [2000] 243 ITR 83/109 Taxman 66 have further observed that (page No. 95) : "Bearing in mind the interpretation of the Apex Court, as per provisions under section 263 of the Act, if one turns to the order of the Commissioner of income-tax - 18, Mumbai revisional order passed under section 263 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt as he thinks fit in exercise of the judgment and according to his understanding of the law and facts. For this purpose, he can call for and examine whatever documents he considers relevant. If the Assistant Collector fails to follow any judgment of the High Court or this court, the assessee had adequate statutory remedies by way of an appeal and revision against the assessment order. The court should not try to control the mode and manner in which an assessment should be made. If the Assistant Collector is of the view that enquiries are necessary to be made as to the price at which trucks were sold at the Regional Sales Office, the court cannot stop him from making such enquiries." (p. 288) A reading of the above said judgment would cl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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