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2017 (1) TMI 1635 - MADRAS HIGH COURTRevision u/s 263 - allowability of the claims of expenditure - error arises in the order of assessment that causes prejudice to the revenue - Held that:- The power u/s 263 is a precise power that has to be exercised by the Commissioner only in appropriate cases where an error arises in the order of assessment that causes prejudice to the revenue. In the present case, AO having noticed the claims, calls for material in support thereof. The decision to allow the claims is made after due verification by the officer and is a plausible view in law. In exercising power of revision u/s 263, the CIT essentially seeks to substitute his own conclusions upon the view taken by the assessing officer at the time of assessment. This is impermissible in the context of section 263. As in the case of Malabar Industrial Co Ltd vs CIT (2008 (2) TMI 579 - KARNATAKA HIGH COURT) has settled the position that if the assessing officer has taken a view at the time of assessment based on materials, the CIT cannot seek to revise the view taken merely because he disagrees with it. This does not constitute an ‘error’ for the purposes of section 263. Where two views are possible in relation to a matter, and the assessing officer has adopted one such view, the CIT cannot, by exercise of power u/s 263 impose the other view upon the assessing officer. - Decided in favour of the assessee.
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