TMI Blog2011 (1) TMI 1393X X X X Extracts X X X X X X X X Extracts X X X X ..... 0C) of the Act on the Ex-gratia amount received by him. 3. The Learned A.R submitted than an identical issue was considered by this bench in the case of Valluri Das, Kakinada and others in ITA No.465/Vizag/2010 and others and this bench, vide its order dated 07-12- 2010, had set aside the order passed by the Learned CIT in their respective hands. The Learned A.R also placed before us a copy of the order of the Tribunal relied upon by him. 4. We have gone through the said order. For the sake of convenience, we extract below the facts of the case and also the decision rendered therein. 3. The facts relating to the issue are stated in brief. All these assessees have retired from the State Bank of India under Exit Option Scheme (EO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e us. 4. The learned Authorised Representative submitted that the Assessing Officer has passed the impugned assessment order under section 147 of the Act after fully verifying the claim of the assessee and hence the same cannot be termed as an erroneous order. In this regard the learned Authorised Representative relied upon the decision of ITAT Agra Bench in the case of Radhey Shyam Agarwal (HUF) vs. CIT (2010) 35 (III) ITCL. 392 (Agra-Trib), wherein it has been held as under: When Assessing Officer had reopened the very same issue which was under revision and had examined all the details and after verifying and being satisfied, has taken a plausible view, his order cannot be treated as erroneous simply because in his order, he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10C) of the Act. The Hon'ble Supreme Court has also confirmed the order of the Bombay High court referred (Supra) in the case of Chandra Ranganathan Ors Vs. CIT (2010) (235 CTR (SC) 365). 4.1 The learned Authorised Representative further submitted that the State Bank of India has modified the Exit option scheme, vide its circular dated 5th September, 2006 and on such modification the second and third conditions specified in Rule 2BA, which were stated by Learned CIT as not complied with, also becomes fulfilled. The Learned A.R pointed out that the learned CIT has failed to consider the circular dated 5-9-2006 of the State Bank of India referred (Supra). The learned Authorised Representative, by placing reliance on the decision o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the issue of section 263 of the Act. The Hon'ble Bombay High Court, in the case of Grasim Industries Ltd. V CIT (321 ITR 92) has dealt with the scope of provisions of section 263 as under: Section 263 of the Income-tax Act, 1961 empowers the Commissioner to call for and examine the record of any proceedings under the Act and, if he considers that any order passed therein, by the Assessing Officer is erroneous in so far as it is prejudicial to the interests of the Revenue, to pass an order upon hearing the assessee and after an enquiry as is necessary, enhancing or modifying the assessment or canceling the assessment and directing a fresh assessment. The key words that are used by section 263 are that the order must be considere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are possible and the Income-tax Officer has taken one view with which the Commissioner does not agree, it cannot be treated as an erroneous order prejudicial to the interests of the Revenue unless the view taken by the Income-tax Officer is unsustainable in law. The principle which has been laid down in Malabar Industrial Co. Ltd. [2000] 243 ITR 83 (SC) has been followed and explained in a subsequent judgment of the Supreme Court in CIT v. Max India Ltd. [2007] 295 ITR 282. 7. Coming to the facts of the case, we first notice that the Learned CIT has relied on the directives of CBDT issued in the letter dated 06- 10-2009, which is apparently issued after the completion of the impugned assessment orders. Secondly, the Learned CIT has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the said scheme. However, the Assessing Officer, in the instant cases, have compared the facts with the facts of the case of Anant Kumar Agarwal, (Supra), and on being satisfied with the parity of facts, allowed the claim of the assessees. In these circumstances, we do not find any justification in initiating proceedings under section 263 of the Act in the hands of these assessees. Accordingly, we set aside the orders of the Learned CIT passed under section 263 of the Act in the hands of these assessees. 5. Both the parties agreed that the facts of the instant case are identical to the facts prevailing in the case of Valluri Das, Kakinada and others. Hence, consistent with the view taken therein, we set aside the order of learned C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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