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TMI Blog2017 (4) TMI 299X X X X Extracts X X X X X X X X Extracts X X X X ..... ear 2010-11. 2. The learned Senior Counsel appearing for the appellant submits that the appellant had filed a return in respect of the aforesaid assessment year before the Assessing Authority and the Assessing Authority by order dated 30.3.2013 assessed the appellant to tax. It is stated that the Commissioner of Income Tax, Jabalpur issued a notice under Section 263 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") to the appellant proposing to invoke the powers of suo moto revision in respect of the order of assessment dated 30.3.2013 on the ground that it was erroneous and prejudicial to the interest of revenue. It is stated that the appellant had filed a detailed reply to the same, however, the Commissioner of Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... settled law that merely because an order of assessment is errorneous, it does not mean that it is also prejudicial to the interest of revenue and, therefore, the power under Section 263 of the Act, can be imposed only in case where the authority concerned records a specific finding to the effect that the impugned order is erroneous and is also prejudicial to the interest of revenue. It is submitted that in the absence of recording a finding in respect of both the aforesaid issues, the powers under Section 263 of the Act, cannot be invoked and therefore, the impugned orders be set aside. 5. Having heard the learned senior counsel appearing for the appellant, we find that the substantial questions of law framed in this appeal only relate to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner of Income Tax, Mumbai Vs. Amitabh Bachchan, AIR 2016 SC 2257 relevant extracts of which have been quoted by the Income Tax Appellate Tribunal in paragraphs 4.2 and 4.3 of its order, has arrived at a conclusion that as the Assessing Officer has passed the order of assessment without making a proper enquiry and without applying his mind to the return and the documents filed by the assessee, as such the order is erroneous as well as prejudicial to the interest of revenue. The Tribunal has also recorded a finding of fact, on the basis of the record available, that in the instant case, though the Assessee has submitted records before the Assessing Officer, he has simply accepted the claim of the assessee without examining the same and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Supreme Court in the cases of Malabar Industrial Co. Ltd. (supra) and Ram Pyari Devi Saraogi (supra) as well as the decision of Special Bench of the Income Tax Appellate Tribunal, has recorded a conclusion that such an order is erroneous and prejudicial to the interest of revenue in view of the law laid down by the Supreme Court. 11. The Supreme Court in the case of M/s. Malabar Industrial (supra) extensively interpreting and explaining the powers of revision conferred under section 263 of the Act upheld the order invoking the powers of revision on the ground that the Income Tax Officer passed an order of assessment without application of mind and by blindly accepting the entry in the statement of the account filed by the appellant w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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