2014 (12) TMI 1189 - AT - Income Tax

Validity of revision orders u/s 263 - Held that - Clearly, ld. CIT has not mentioned anything about the assessment order made by the Assessing Officer to be erroneous or prejudicial to the interest of Revenue. Further, even the submissions of the assessee have not been rejected nor rebutted. In these ci rcumstances, we are of the view that the order passed under section 263 is unsustainable and consequently quash the same. - Decided in favour of assessee.

Summary

Issues:
Appeal against order under section 263 for assessment year 2009-10.

Analysis:
The appeal was filed by the assessee against the order passed by the Commissioner of Income Tax, Kolkata-IV under section 263. The assessee's representative argued that the order did not specify that the Assessing Officer's order was erroneous or prejudicial to the Revenue's interest. The representative relied on a decision of the Rajasthan High Court. On the other hand, the Revenue's representative suggested restoring the issues to the Commissioner for a speaking order. The Tribunal reviewed the submissions and the order of the Commissioner. The Commissioner's order did not establish the Assessing Officer's order as erroneous or prejudicial. The Tribunal concluded that the order under section 263 was unsustainable and quashed it. Consequently, the appeal filed by the assessee was allowed. The decision was pronounced in open court on 3rd December 2014.