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2014 (11) TMI 95 - ITAT HYDERABADValidity of order u/s 263 – Erroneous or prejudicial to the revenue or not - Held that:- The AO in the assessment order is not required to give detailed reasons and once it is clear that there was application of mind by an enquiry, the respondent, merely because he entertains a different opinion in the matter, cannot invoke his powers under section 263 of the Act - It is, therefore, not correct to say that there was no proper enquiry by the Assessing Officer – the AO had not only taken a possible view but in the circumstances the only view possible and, therefore, his order could not have been termed as erroneous or prejudicial to the revenue warranting exercise of revisional jurisdiction u/s 263 of the Act by the respondent. The respondent had no different or new material to take different view from the one taken by the AO and the reasons given by him to reopen the assessment and sustain the revision are totally unacceptable – revenue is not vested with any power u/s 263 to initiate proceedings for revision in every case and start re-examination and fresh enquiries in matters which have already been concluded under the law. If AO takes a possible view, then the assessment order cannot be said to be erroneous and the Commissioner is not entitled to exercise jurisdiction u/s 263 of the Act, as decided in Malabar Industrial Co. Ltd. v. CIT [2000 (2) TMI 10 - SUPREME Court] - whether there was application of mind before allowing the expenditure in question has to be seen, if there was an inquiry, even inadequate that would not by itself give occasion to the Commissioner to pass orders under Sec. 263 merely because he has a different opinion in the matter - it is only in cases of lack of inquiry that such a course of action would be open - an assessment order made by the Income Tax Officer cannot be branded as erroneous by the Commissioner simply because, the order should have been written more elaborately – Decided in favour of assessee.
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