TMI Blog2014 (9) TMI 924X X X X Extracts X X X X X X X X Extracts X X X X ..... out applying the principles of natural justice or without application of mind - order passed by the Assessing officer u/s. 154 of the I.T. Act cannot be said to be prejudicial to the interests of the Revenue.. Hence, we cannot uphold the order passed by the CIT u/s. 263 of the I.T. Act. At the time of hearing, it was brought to our notice by the Ld. AR that the order passed by the Assessing officer u/s. 154 of the Act is pending before the CIT(A) for adjudication. Hence, we make it clear that our findings herein cannot be influenced by the CIT(A) order while deciding the appeal against the order passed u/s. 154 of the I.T. Act and he is required to decide the issue on merits - Decided in favour of assessee. - I.T.A. No. 243/Coch/2014 - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing officer that the omission to assess the amount of ₹ 38,54,595/- being interest on fixed deposits as income from other sources, was not a mistake apparent on record to be rectified by invoking the provisions of sec. 154 of the I.T. Act. Being so, the order u/s. 154 passed by the Assessing officer was erroneous and the omission to assess the above amount of ₹ 38,54,595/- under income from other sources was prejudicial to the interests of revenue. Accordingly, the CIT invoked the provisions of sec. 263 of the I.T. Act and he cancelled the order of the Assessing officer passed u/s. 154 of the I.T. Act dated 23-01-2014 and directed the Assessing officer to pass a fresh order by bringing to tax the interest received on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not erroneous but is prejudicial to the interests of the Revenue - recourse cannot be taken to sec. 263(1) of the I.T. Act. The provision cannot be invoked to correct each and every type of mistake or error committed by the Assessing officer, it is only when the order is erroneous that the section will be attracted. An incorrect assumption of facts or an incorrect application of law will satisfy the requirement of the order being erroneous. In the same category, fall orders passed without applying the principles of natural justice or without application of mind. The phrase prejudicial to the interests of the revenue is not an expression of art and is not defined in the Act. Understood in its ordinary meaning it is of wide import and is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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