Revision under section 263 fails where the Assessing Officer adopts a possible view and the Commissioner merely prefers another opinion.

Revision under section 263 was not available because the Assessing Officer had raised the same query, accepted the assessee's explanation, and taken a possible view on the material before him. The record did not show that the assessment order was erroneous or prejudicial to revenue. A Commissioner cannot invoke revision merely to substitute a different opinion or act on a change of view. The ITAT was therefore right in quashing the revision order, and the challenge failed.

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Issues: Whether the ITAT was justified in setting aside the Commissioner's order passed under section 263 of the Income-tax Act, 1961.

Analysis: The Assessing Officer had raised the same query during assessment and had accepted the assessee's explanation. The record did not show that the assessment order was erroneous. Where the Assessing Officer has taken a possible view on the material before him, revision under section 263 cannot be invoked merely because the Commissioner prefers a different view. An order passed only on a change of opinion does not justify interference under section 263.

Conclusion: The ITAT was right in quashing the Commissioner's order under section 263; the challenge to that decision failed.

Ratio Decidendi: Revision under section 263 of the Income-tax Act, 1961 is not permissible when the Assessing Officer has adopted a possible view on the facts and the Commissioner seeks only to substitute a different opinion without showing that the assessment order is erroneous and prejudicial to revenue.

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