https://www.taxtmi.com/caselaws?id=201764 The Court ruled in favor of the respondent, dismissing the appeal and affirming that the issuance of the show cause notice under section 263 was unwarranted. The judgment emphasized that a loss of revenue alone does not make an order prejudicial unless it is unsustainable in law. The legal position at the time supported the view taken by the CIT (A), making the notice unnecessary. The Court clarified that the phrase "prejudicial to interest of revenue" in section 263 must be connected to an "erroneous order" by the Assessing Officer. en-us Wed, 19 Jan 2011 00:00:00 +0530 Fri, 21 Dec 2012 15:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=201764 The Court ruled in favor of the respondent, dismissing the appeal and affirming that the issuance of the show cause notice under section 263 was unwarranted. The judgment emphasized that a loss of revenue alone does not make an order prejudicial unless it is unsustainable in law. The legal position at the time supported the view taken by the CIT (A), making the notice unnecessary. The Court clarified that the phrase "prejudicial to interest of revenue" in section 263 must be connected to an "erroneous order" by the Assessing Officer. Case-Laws Income Tax Wed, 19 Jan 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=201764