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TMI Blog2011 (7) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Respondent. ORDER Hari Om Maratha, Judicial Member. This appeal of the assessee, for assessment year 2006-07, is directed against the order of the ld. CIT, Chennai-I, dated 28-12-2010, passed under section 263 of the Act. 2. Briefly stated, the facts of the case leading to this revision by the ld. CIT of the assessment order passed under section 143(3) for assessment year 2006-07 in above assessee's case on 31-12-2008, are that a bad debt of Rs.7,39,52,514 out of total bad debts written off at Rs. 8,46,14,046 being a lease amount to be received from Madhya Pradesh State Road Transport Corporation Ltd. the Assessing Officer has allowed a sum of Rs. 7,39,52,514 as bad debt having been written off. The lease amount bei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner of Income-tax ought not to have applied the decision of the Hon'ble High Court of Madras in South India Surgicals Company Ltd. v. Asstt. Commissioner of Income-tax, reported in 281 ITR (Mad.) to the Appellant's case, as the facts and circumstances in the said case was totally different and in contrast to the set of facts and analogy and by any measure was bad in law. 4. The Commissioner of Income-tax has grossly erred in not accepting contentions of the Appellant that the Debtor, whose debt was written off as bad, is only a Commercial Organisation and not a Government, in as much as the outstanding was not even guaranteed by the Government. 5. The Commissioner of Income-tax has grossly erred in not considering the various J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e opportunity to the appellant. 10. For these and other grounds that are to be put forth at the time of hearing of this appeal, the Appellant prays the Hon'bIe Income-tax Appellate Tribunal, Chennai to annul the order of the Commissioner of Income-tax Chennai-I and to pass such other order or orders as it may deem fit and proper in the facts and circumstance of the case." 3. It was argued by the ld. AR, Shri V. Subramanyan, that on the basis of audit party's objection, the ld. CIT has revised the assessment order which tantamounts to change of opinion. It was also argued that regarding bad debt, entire relevant evidence was produced before the Assessing Officer and after considering the same, he has come to his conclusion. On the othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order passed by the Officer is erroneous insofar as it is prejudicial to the interest of the revenue. Once he comes to the above conclusions on the basis of the 'material' that the order of the Assessing Officer is erroneous and also prejudicial to the interests of the revenue, the CIT is empowered to pass an order as the circumstances of the case may warrant. He may pass an order enhancing the assessment or he may modify the assessment. He is also empowered to cancel the assessment and direct to frame a fresh assessment. He is empowered to take recourse to any of the three courses indicated in section 263. So, it is clear that the CIT does not have unfettered and unchequered discretion to revise an order. The CIT is required to exercise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (v) Every loss of revenue cannot be treated as prejudicial to the interest of the revenue and if the Assessing Officer has adopted one of the courses permissible under law or where two views are possible and the Assessing Officer has taken one view under with which the CIT does not agree, it cannot be treated as an erroneous order, unless the view taken by the Assessing Officer is unsustainable under the law. (vi) If while making the assessment, the Assessing Officer examines the accounts, makes enquiries, applies his mind to the facts and circumstances of the case and determines the income, the CIT, while exercising his power under section 263, is not permitted to substitute his estimate of income in place of the income estimated by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of South India Surgical Company Ltd. (supra) is squarely applicable to the facts of this case, in the event that the ld.AR has been incapable to establish before us that Madhya Pradesh State Road Transport Corporation Ltd. is not so controlled or managed by the Government of Madhya Pradesh. Thus, in our opinion, the ratio of the Hon'ble Jurisdictional High Court's decision squarely applies to the facts of the given case. Therefore, it becomes manifestly clear that the assessment order is not framed in consonance with the express provisions of the Act and the interpretation given by the Hon'ble Jurisdictional High Court has a binding effect on him. Consequently, in view of our observation made in the legal portion regarding the law ..... X X X X Extracts X X X X X X X X Extracts X X X X
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