2017 (12) TMI 1617 - HC - Income Tax

Revision u/s 263 - disallow the claim of exemption u/s 54EC and 54F - order erroneous and prejudicial to the interest of the revenue - Held that - While exercising the powers under Section 263 the Commissioner must not sit as an appellate authority and that where two views are possible and if the AO has taken one plausible view the Commissioner cannot interfere with such view merely because he has taken a different view. In the light of Section 2(47) it cannot be said that the view taken by the AO was not a plausible one. In the absence of any specific provision which determines the actual date of transfer the view taken by the AO that the date on which form No.7B was signed by both parties and presented to the purchaser company is the date of effective transfer can be a plausible view. On these facts of the case the Commissioner ought not to have exercised his revisional jurisdiction under Section 263 of the Act. - Decided in favour of assessee.

Summary

The High Court of Andhra Pradesh dismissed an appeal by the Revenue against a common order dated 09.12.2016 pertaining to ITA.No.177/Vizag/2015. The Senior Standing Counsel for the Income Tax Department conceded that a similar appeal was already dismissed by the Court, and the issues were common in both appeals. Consequently, the current appeal was also dismissed with the direction that the reasons in the previous dismissal shall apply.