TMI Blog2011 (1) TMI 1175X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 143(3) on December 29, 2008, is erroneous in so far as prejudicial to the interests of the Revenue - Held that:- issue considered and decided by the learned Commissioner of Income-tax within the meaning of Explanation (c) to section 263 of the Act, does not fall under the jurisdiction of the provisions of section 263 of the Act, assessment order passed by the Assessing Officer is neither erroneous nor prejudicial to the interests of the Revenue, order of the learned Commissioner of Income-tax cannot be upheld and the same is set aside, appeal of the assessee is allowed - IT APPEAL NO. 6 (ASR.) OF 2010 - - - Dated:- 31-1-2011 - C.L. SETHI, MEHAR SINGH, JJ. S.K. Bansal for the Appellant. Tarsem Lal for the Respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case, as culled out from the relevant records are that the assessee is a private limited company where the books of account are audited. The assessee filed the return of income on November 26, 2006, declaring an income of Rs. 6,639 and after disallowance of various expenses, in different heads, the income was assessed at Rs. 4,16,306. The Assessing Officer examined each end every aspect of the case, including the expenses relating to manufacturing and/or profit and loss account and disallowed the expenses on estimate basis. The learned Commissioner of Income-tax doubted the disallowance made by the Assessing Officer and initiated proceedings by issuing notice dated October 12, 2009 under section 263(1) of the Act. The learned Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he view of the Assessing Officer even if there has been a loss of revenue. ( ii ) In the case of Jewel Enterprises v. ITO [2010] 40 SOT 1 (Mum.), the Income-tax Appellate Tribunal, Mumbai Bench has held as long as an Assessing Officer has taken a possible view of a matter after applying his mind to the facts of the case and legal provision, the view so taken cannot be subjected to revision proceedings under section 263 merely because the Commissioner has a different view of that matter. ( iii ) In the case of SICAL Logistics Ltd. v. Addl. CIT , [2010] 127 ITD 187 (Chennai), the Income-tax Appellate Tribunal, Chennai Bench held as under : "Section 263 of the Income-tax Act, 1961-Revision-Of orders prejudicial to interests of Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer has categorically after appreciation of factual matrix of the case disallowed one-fourth of the total expenditure. Similarly, in paragraph 5 of the impugned assessment order, the Assessing Officer has disallowed brought forward depreciation loss after appreciation of the facts of the case. The learned Commissioner of Income-tax, in the impugned order held that the assessment order dated December 29, 2008, is erroneous and prejudicial to the interests of the Revenue within the meaning of section 263 of the Act, on the ground that the assessee had adjusted loss to avoid tax liability in respect of vouchers which were not produced by the assessee. It is further clarified that the issue considered and decided by the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X
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