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TMI Blog2014 (1) TMI 400X X X X Extracts X X X X X X X X Extracts X X X X ..... matter on an appeal by the assessee on the order u/s. 263 passed by the Commissioner of Income-tax. 3. None appeared for the assessee. We have heard the learned DR. 4. Brief facts of this case are that the assessee filed return of income for assessment year 2006-07 on 17.3.2007 declaring total loss of Rs. 14,030. The Assessing Officer completed the assessment u/s. 143(3) of the Act on 24.12.2008 by accepting the loss returned by the assessee. The CIT acting u/s. 263 of the Act noticed from the assessment record that the assessee purchased the following lands at Mansanpally village, Maheswaram Mandal, Ranga Reddy district:- Sl. No. Details of land purchased Extent Value (Rs.) 1 Sale Deed dated 3.11.05 vide document No. 6938/2005 15 Ac. 33 Gts. Sy No. 332 3,45,55,650 2 Sale Deed dated 3.11.05 vide document No. 6938/2005 6 Ac. 33 Gts Sy. No. 328 76,37,525 3 Sale Deed dated 18.11.05 vide document No. 6981/2005 1 Ac. 19 Gts Sy. No. 337 16,15,025 4 Sale Deed dated 18.11.05 vide document No. 7050/2005 1 Ac. 37 Gts. Sy. Nos. 332-333, 331 25,29,350 5 Sale Deed dated 18.11.05 vide document No. 7835/2005 1 Ac. 19 Gts. Sy. No. 337 4,84,440 Total 4,68 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs of the Tribunal order dated 18.5.2012 in ITA No. 1080/Hyd/2011 wherein the Tribunal decided the same issue against the assessee by observing as follows: "27. We have carefully gone through the aforesaid observations. "Adopting" one of the courses permissible in law necessarily requires the Assessing Officer to consciously analyse and evaluate the facts in the light of relevant law and bring them on record. It is only then that he can be said to have "adopted" or chosen one of the courses permissible in law. The Assessing Officer cannot be presumed or attributed to have "adopted" or chosen a course permissible in law when his order does not speak in that behalf. Similarly, "taking" one view where two or more views are possible also necessarily imports the requirement of analysing the facts in the light of applicable law. Therefore, proper examination of facts in the light of relevant law is a necessary concomitant in order to say that the Assessing Officer has adopted a permissible course of law or taken a view where two or more views are possible. It is only after such proper examination and evaluation has been done by the Assessing Officer that he can come to a conclusion as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remembered that judicial utterances are made in the setting of the facts of a particular case, said Lord Morrin in Harrington v. British Railways Board [1972] 2 WLR 537 (HL). Circumstantial flexibility, one additional or different fact may make a world of difference between conclusions in two cases...." Therefore, the observations of the Hon'ble Supreme Court in Malabar Industrial Co. Ltd's case (supra) on which reliance has been placed by the learned Counsel cannot be read in isolation. The judgment deserves to be read in its entirety to cull out the law laid down by the Hon'ble Supreme Court. If so read, it is quite evident that the orders passed on an incorrect assumption of facts or incorrect application of law or without applying the principles of natural justice or without application of mind will satisfy the requirement of the order being erroneous and prejudicial to the interest of the revenue. If the order sought to be revised under Section 263 suffers from any of the aforesaid vices, it cannot be said that the Assessing Officer has "adopted", in such an order, a course permissible in law or "taken" a view where two or more views are possible." 29. It was next contended b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner from revising the erroneous order passed by the Assessing Officer, which was prejudicial to the interest of the revenue. In fact, such a course would be counter productive as it would have the effect of promoting arbitrariness in the decisions of the Assessing Officers and thus destroy the very fabric of sound tax discipline. If erroneous orders, which are prejudicial to the interest of the revenue, are allowed to stand, the consequences would be disastrous in that the honest tax payers would be required to pay more than others to compensate for the loss caused by such erroneous orders. For this reason also, we are of the view that the orders passed on an incorrect assumption of facts or incorrect application of law or without applying the principles of natural justice or without application of mind or without making requisite inquiries will satisfy the requirement of the order being erroneous and prejudicial to the interest of the revenue within the meaning of Section 263. The case law relied upon by the AR are on different set of facts which cannot be applied to facts of the present case. In view of the above discussion, we are inclined to uphold the direction given by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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