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TMI Blog2017 (7) TMI 815X X X X Extracts X X X X X X X X Extracts X X X X ..... er has not committed any error in determining the taxable income of the assessee under the head income from business. In view of the above question no. 1 is answered in favour of the assessee and against the Income Tax Department and it is held that the income derived by the assessee from letting out the shops in the "Atlantis Mall" is income from business for the purposes of assessment of income tax. - Decided in favour of the assessee Revision u/s 263 - as per CIT-A AO had only made the assessment of the taxable income of the assessee on the basis of the income as disclosed by it under the head income from business without considering the other aspects of the matter whether it would fall under the head Income from house property - H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , JJ. For the Appellant : Manu Ghildiyal For the Respondent : Abhinav Mehrotra ORDER The Principal Commissioner of Income Tax Allahabad has preferred these Income Tax Appeals under Section 260-A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Allahabad dated 30.9.2016 whereby the tribunal has set aside the order of the Commissioner passed in exercise of powers under Section 263 of the Act holding that the Commissioner was not justified in exercising the revisional jurisdiction in the matter thus affirming the order of the Assessing Officer. We have heard Sri Manu Ghildiyal, learned counsel for the Income Tax Department and Sri Abhinav Mehrotra, learned counsel appearing for the respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Assessing Officer vide order dated 21.12.2009 holding that the the main business of the assessee was to run and operate the Mall and that its main source of income is that of rent received from various shops put up in the Mall assessed its income under the head income from business. The Income Tax Department not being satisfied by the said order preferred a revision under Section 263 of the Act before the Commissioner. The revision was allowed by the order dated 16.1.2002 on the ground that the order passed by the Assessing Officer was erroneous and is also prejudicial to the interest of the revenue, in as much as, the Commissioner was of the opinion that the income derived by the Assessee was apparently income from house property a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he income so derived by the assessee may be the income from house property but would ultimately be the business income and as such the Assessing Officer has not committed any error in determining the taxable income of the assessee under the head income from business. In view of the above question no. 1 is answered in favour of the assessee and against the Income Tax Department and it is held that the income derived by the assessee from letting out the shops in the Atlantis Mall is income from business for the purposes of assessment of income tax. Now coming to the second question of law as mentioned above we find that the Commissioner of Income Tax ordered for setting aside the assessment order primarily for the reason that the Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f revising an order under Section 363 of the Act two conditions need to be satisfied namely that the order of the Assessing Officer sought to be revised is erroneous and it is prejudicial to the interest of the revenue. The Supreme Court went ahead in holding that it has no power to correct each and every mistake or error committed by the Assessing Officer. Therefore, interpreting the expression prejudicial to the interest of revenue it held that the order of the Assessing Officer can not be termed as prejudicial simply because the Assessing Officer adopted one of the courses permissible in law resulting in loss of revenue or where two views were possible if the Assessing Officer has taken one view, the Commissioner has no power to interf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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