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TMI Blog2019 (3) TMI 478X X X X Extracts X X X X X X X X Extracts X X X X ..... rest of the Revenue unless a view taken is unsustainable in law. In a present case it is seen that the amount of tax determined pursuant to the revisionary order has been computed at ₹ 84.26 lakh, which is lower than the amount of tax computed pursuant to the original assessment u/s.143(3) at ₹ 95.57 lakh. Section 263 empowers the Commissioner of Income-tax to revise an assessment order which is erroneous as well as prejudicial to the interest of the Revenue. It is trite law that the revisionary power can be exercised only when the assessment order passed by the AO is both erroneous as well as prejudicial to the interest of the Revenue. If one of the two conditions is not satisfied, the power to revise is ousted. Here is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re that the assessee filed his original return declaring total income at ₹ 1,95,670/-. During the year under consideration, the assessee sold agricultural land at Gut No.901, Anjaneri Shivar, Nashik. Sale consideration, as per sale deed, was declared at ₹ 80.00 lakh. As against that, the assessee claimed that he actually received a sum of ₹ 3.00 crore against the sale of agricultural land, viz., ₹ 80.00 lakh through cheque; ₹ 1.20 crore was retained by the Builder against booking of two flats by the assessee; and the remaining ₹ 1.00 crore was given to his friend Shri Dalvi. The Assessing Officer (AO) finalized the assessment by computing long term capital gain chargeable to tax at ₹ 16,78,378/- wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee. Notwithstanding that, it is seen that the amount of tax determined pursuant to the revisionary order has been computed at ₹ 84.26 lakh, which is lower than the amount of tax computed pursuant to the original assessment u/s.143(3) at ₹ 95.57 lakh. 4. Section 263 empowers the Commissioner of Income-tax to revise an assessment order which is erroneous as well as prejudicial to the interest of the Revenue. It is trite law that the revisionary power can be exercised only when the assessment order passed by the AO is both erroneous as well as prejudicial to the interest of the Revenue. If one of the two conditions is not satisfied, the power to revise is ousted. Here is a case in which the assessment order passed p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alabar Industrial Company adverts to the decisions of the Karnataka and Gujarat High Courts and of the view of the Division Bench in Gabriel India, according to which, a loss of tax has been regarded as prejudicial to the interests of the Revenue. The Supreme Court has held that if due to an erroneous order of the Income Tax Officer, the Revenue is losing tax lawfully payable by a person, it would certainly be prejudicial to the interests of the Revenue. Every loss of revenue as a consequence of an order of the Assessing Officer, cannot be treated as prejudicial to the interests of the Revenue. For instance, where the Assessing Officer adopted one of several courses permissible in law or where two views are possible and the Assessing Office ..... X X X X Extracts X X X X X X X X Extracts X X X X
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