TMI Blog2017 (5) TMI 1613X X X X Extracts X X X X X X X X Extracts X X X X ..... not say that such an order of the AO was erroneous and prejudicial to the interest of Revenue. In the instant case, it is evident as we have already observed that a thorough enquiry was conducted on the assessee by the Department and when such an exercise has been concluded, then the order of the AO cannot be erroneous and prejudicial to the interests of the Revenue - decided in favour of assessee - IT APPEAL NO. 207 (JODH.) OF 2016 - - - Dated:- 22-5-2017 - B.P. JAIN, ACCOUNTANT MEMBER AND PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER Suresh Ojha for the Appellant. A.K. Das for the Respondent. ORDER Partha Sarathi Chaudhury, Judicial Member - This appeal preferred by the assessee against the order of the learned Principal CIT, Bikaner, dated 28th March, 2016 passed under section 263 of the Act for asst. yr. 2011-12. The effective ground in this appeal is only whether the exercise of Jurisdiction under section 263 of the Act by the learned Principal CIT, Bikaner, was valid or not. 2. The facts which borne out from the order of the Principal CIT are that the return of income for the assessment year under consideration was filed by the assessee on 21st Oct., 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e debited in the interest account were submitted and also the assessee furnished explanation regarding allowability of the interest and after examining of the interest account, the AO has accepted the interest account and he was satisfied regarding allowability of the interest account to various parties and therefore, the interest account was considered and examined by the AO and then it was accepted by him. 2.3 In support of the aforesaid, the learned counsel for the assessee has placed reliance upon following judgments : Sl. No. Case Law Observation 1. CIT v. Ganpat Ram Bishnoi [2006] [2008] 296 ITR 292 (Raj.) When enquiry in fact has been conducted and the AO has reached a particular conclusion, though reference to such enquiries has not been made in the order of the assessment but the same is apparent from the record, Jurisdiction assumed by CIT held to be not sustainable. 2. CIT v. Girdhari Lal [2002] 258 ITR 331 (Raj.) AO after going through the material on record and after considering the explanation etc. and books of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow the decisions of Jaipur Bench of the Tribunal and that the CIT(A) has committed a mistake which is not curable 12. Sunbeam Auto Ltd. v. CIT [2006] 100 TTJ 209 (Delhi) If two views are possible AO has taken one of possible view-Cannot be reviewed. 13. CIT v. Mehsana District Co operative Milk Producers Union Ltd. [2003] 263 ITR 645 (Guj.) When, however, two views are possible and AO has taken one view, with which the CIT does not agree, it cannot be treated as an erroneous order prejudicial to the interest of Revenue so as to exercise the power under section 263. 14. Gabrial India Ltd. (supra) The CIT cannot revise order merely because he disagrees with the conclusion arrived at by the AO as to allowability of an expenditure as revenue expenditure or because in his opinion AO's order should have been written more elaborately. 3. The submissions made on behalf of the assessee have been carefully considered and the material placed before me has been examined with due care. On consideration, I find th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of law and has come to a conclusion which is permissible on the facts and in the circumstances of a particular case, the exercise of jurisdiction under section 263 of the IT Act, 1961 is not permissible. Therefore, it becomes imperative to find out whether or not in the instant case, the AO has performed his functions in accordance with law. namely (a) the principles of natural justice have been applied and the incriminating material available with him has been confronted with the assessee; and (b) he had adopted one of the courses permissible \ in law in light of the facts the case. 4. As stated earlier, the case of the assessee is that all the issues raised in the show-cause notice had been properly examined by the AO at the time of assessment proceedings. According to the assessee, the issues relating to commission income, interest income, expenses debited on account of transportation of wool yam to Bhadhoi (UP), demurrage of ₹ 71,900 transferred from woollen account interest payment of ₹ 10,30,017 and sundry creditors and debtors were examined by the AO before completing the subject assessment. 4.1 As regards, provisions of sub-section (6) of section 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessee. 8. At the time of hearing before us it was vehemently argued by the learned Authorised Representative that the jurisdiction exercised by the Principal CIT, Bikaner under section 263 of the Act was not as per the provisions of IT Act and neither it was legally warranted. The learned Authorised Representative submitted that there were no specific reasons recorded in the show-cause notice issued under section 263 which was available in the paper book p. 18, The learned Authorised Representative in support of his contention relied on various judicial decisions as placed on record with the learned CIT. The learned Authorised Representative further submitted that all details were filed before the AO and that the AO has conducted detailed enquiry-regarding the transactions of the assessee and entire evidence of details filed before the Department were available in paper book, pp. 6 to 17. These evidences and the paper book have been filed before us. The learned Departmental Representative on the other hand, relied on the order of the authorities below. 9. We have perused the case records, heard the rival contentions and considered the judicial decisions placed befor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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