By Ajay R. Singh, Advocate
15. Principal Commissioner of Income Tax-12 vs. American Spring & Pressing Works Pvt Ltd,
[ITA No. 682 OF 2018, Dated: 2nd August, 2023; AY: 2011-12 (Bom.) (HC).]
Section 263 — Revision — Erroneous and prejudicial to the interest of revenue where two views are possible — Assessment Order cannot be said to be erroneous.Assessee was engaged in the business of manufacture and sale of agricultural equipment and development of real estate and hotel business. The assessment for 2011–12 was completed on 13th March, 2014 under Section 143(3) of the Act determining the total income of Assessee at Rs. 3.29 crores. This was revised by Principal CIT under Section 263 of the Act by holding that the order passed by the Assessing Officer was erroneous and prejudicial to the interest of revenue. Respondent challenged validity of revision order passed by Principal CIT.
The ITAT held that the Principal CIT could not have invoked the jurisdiction of revision for proceedings under Section 263 of the Act.
The Honourable Court observed that the scope of revision proceedings under Section 263 of the Act has been dealt by this Court in Grasim Industries Ltd vs. CIT (321 ITR 92). In Grasim Industries (supra), wherein the Court held that where two views are possible and the Income Tax Officer has taken one view with which the Commissioner does not agree, it cannot be treated as erroneous order prejudicial to the interest
