9911796707
TMI Blog2025 (2) TMI 986X X X X Extracts X X X X X X X X Extracts X X X X ..... For Income Tax, Sri. C.E. Unnikrishnan, Spl. Government Pleader Sri. Mohammed Rafiq, Spl. Government Pleader JUDGMENT Easwaran S., J. The assessee is before us in this appeal aggrieved by the order of the Income Tax Appellate Tribunal, Kochi bench. Facts of the case 2. The appellant, a domestic company engaged in operating and maintaining of the Cochin International Airport, is an assessee under the provisions of the Income Tax Act, 1961. For the assessment year 2012-13, the appellant declared a total income of Rs. 134,43,40,439/- under Section 115-JB of the Income Tax Act, 1961. Since the tax payable under the regular provisions of the Act was lower and the appellant had claimed deduction under Section 80-IA of the Act in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to accept the explanation and proceeded to issue the assessment order. However, the Principal Commissioner of Income Tax-1, Kochi found that the said assessment was erroneous and prejudicial to the interest of the Revenue, and decided to invoke the jurisdiction under Section 263 of the Income Tax Act, 1961 and issued a notice proposing to revise the order of assessment. The appellant showed cause by its reply dated 22.9.2016. However, the reply was found to be unsatisfactory and therefore, the Principal Commissioner of Income Tax-1, Kochi directed the assessing authority to re-examine the issue. Aggrieved by the order, the appellant preferred an appeal before the Income Tax Appellate Tribunal, which was dismissed by order dated 15.3.2018, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had no jurisdiction to invoke Section 263 of the Income Tax Act, 1961 because it was basically due to a change of opinion that he decided to revise the order of assessment, which is impermissible under law. He maintained the stand that going by the decision of the Hon'ble Supreme Court in Vijaya Bank (supra), the appellant was entitled to claim deduction of the amount of Rs. 1,00,33,280/- towards the provision for bad and doubtful debts. Reliance is also placed on the decision of the Hon'ble Supreme Court in Commissioner of Income Tax (Central), Ludhiana v. Max India Ltd. [(2007) 15 SCC 401] to contend that when there are two views possible and the income tax officer had taken one view, it cannot be treated as an erroneous order prejud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material irregularity. 9. An order sought to be revised under Section 263 would become erroneous and fall within the category of errors, if it is based on an incorrect assumption of facts or application of law. Admittedly, the appellant claimed deduction of Rs. 1,00,33,280/- for which notice under Section 142 of the Income Tax Act was issued by the assessing officer on 26.5.2014 and 24.12.2014. The appellant replied to the said notice. Thereafter on 27.3.2015, the assessment order was passed accepting the stand of the assessee in not including the amount of Rs. 1,00,33,280/-. In fact, we must note that in the assessment order, the assessing officer has not stated any reason as to why the claim for deduction of Rs. 1,00,33,280/- was accepte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... every type of mistake or error committed by the Assessing Officer; it is only when an order is erroneous that the section will be attracted. An incorrect assumption of facts or an incorrect application of law will satisfy the requirement of the order being erroneous. In the same category fall orders passed without applying the principles of natural justice or without application of mind." 12. Therefore, in the light of the principle discussed above, we find that Section 263 of the Income Tax Act, 1961 applies in the following cases: (a) the order sought to be revised contained error for lack of reasoning; (b) the order sought to be revised proceeds on incorrect assumption of facts and applies the law incorrectly, and (c) stereotype o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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