Once the AO taken a view after conducting enquiry than CIT cannot take different view under sec 263

Last updated: 03 March 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The facts in the case before Hon’ble High Court (supra) are identical to the facts in hand because the assessment order was passed by the AO as per the discussion with CIT and as per the office note dt. 28/12/2006 then the subsequent CIT cannot revise the assessment order. In view of the above discussion, we hold that when the AO has conducted an enquiry and taken a possible view then while exercising the jurisdiction u/s 263, the CIT cannot take a different view. Accordingly, the assessment order cannot be treated as erroneous and prejudicial to the interests of the revenue which can be revised by exercising the power u/s 263. Accordingly, the impugned revision order passed u/s 263 is not sustainable and liable to be set aside

Citation :
Goldgerg Finance P. Ltd., … Appellant 201, Arihant, Above Sam Electronics Parsi Agyari Lane, Thane West – 400 601.(PAN – AAACG9549B)Vs.Asstt. Commissioner of Income-tax, …Respondent Central Circle 7, Old CGO Annexe, Mumbai – 400 020.