2014 (11) TMI 884

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..... his appeal is preferred by the Revenue, challenging the order passed by the Tribunal which has held that the learned Commissioner of Income Tax was not justified in invoking the power of Section 263 of the Income Tax Act, 1961, in directing the Assessing Officer to add back the provision for bad and doubtful debts. 2. By virtue of the power conferred under Section 263 of the Act, the Commissioner .....

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..... Section 115JA. A bad, unascertained and doubtful debt claimed by the assessee cannot be treated as unascertained liability. The assessing authority adopted one view. The Commissioner could not have interfered in the order in view of the judgment of the Apex Court in the case of Malabar Industrial Co. Ltd. (supra). 3. Learned Counsel for the Revenue contends that in view of the amendment to Sectio .....

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..... ct, cannot be made without even examining the merits and consequently recorded a perverse finding?" 5. The Apex court in the case of CIT (Central) v. Max India Ltd reported in [2008] 166 TAXMAN 188 (SC) in para No.2 while dealing with the retrospective operation of amendments and the exercise of powers under Section 263 of the Act, has referred to the case in Malabar Industrial Co. Ltd. Vs. CIT ( .....

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..... ssioner does not agree, it cannot be treated as an erroneous order prejudicial to the interest of the revenue, unless the view taken by the Income-Tax Officer is unsustainable in law. According to the learned Additional Solicitor General on interpretation of the provision of Section 80HHC(3) as it then stood the view taken by the Assessing Office was unsustainable in law and therefore the Commissi .....

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..... ough retrospective will not attract the provision of Section 263 particularly when as stated above we have to take into account the position of law as it stood on the date when the Commissioner passed the order dated March 5, 1997, in purported exercise of his powers under Section 263 of the Income Tax Act." 6. In view of the aforesaid observations made by the Apex Court, we are of the view that .....

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