TaxTMI 
TaxTMI 
TaxTMI 
2016 (2) TMI 1047
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....e. The ld. counsel took us to the relevant documentary evidences which are placed in the paper book stating that the issues raised by the ld. CIT in his order considering them as erroneous in as much as pre-judicial to the interest of the revenue are baseless, since the A.O has examined all the issues in the assessment order made u/s. 143(3) of the Act. 3. The D.R. strongly relied upon the order of the ld. CIT. We have given a thoughtful consideration to the orders of the authorities below and with the assistance of the ld. counsel, we have gone through all the relevant exhibits brought to our notice during the course of assessment proceedings. 4. A perusal of the notice issued by the Commissioner u/s. 263 of the Act shows that the Commis....
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....ome-tax Officer is erroneous in so far as it is prejudicial to the interests of the Revenue. The Commissioner has to be satisfied of twin conditions, namely, (i) the order of the Assessing Officer sought to be revised is erroneous; and (ii) it is prejudicial to the interests of the Revenue. If one of them is absent-if the order of the Income-tax Officer is erroneous but is not prejudicial to the Revenue or if it is not erroneous hut is prejudicial to the Revenue- recourse cannot be had to section 263(1) of the Act. The provision cannot be invoked to correct each and 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 ....
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....g to the second contention of the Commissioner which relates to the claim of set off of brought forward business loss/unabsorbed depreciation of earlier years when there was no loss available. 8. In assessment year 2007-08, the assessee became a sick company and went to the BIFR and as per the scheme of arrangement, the BIFR directed the assessee to write off of depreciation, business loss from its capital. Assessee carried out the directions of the BIFR and wrote off the depreciation/losses accordingly which can be found clearly from the Profit and Loss account for the year ended 31.03.2008 which is at page 97 of the paper book. Under the head "Effect of Rehabilitation Scheme". Following items are found (a) Securities premium A/c. - Adj....
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....t, penal interest and other charges upon repayment of OTS amount. The promoters have contributed Rs. 3.67 crores towards additional working capital. In accordance with the rehabilitation scheme the Company has issued 155000000 fresh equity shares of Rs. 1/- each fully paid up on a preferential basis in favour of the promoters / promoter groups for an amount aggregating to Rs. 15.50 crores. In addition, the promoters of the Company have brought in Rs. 29.00 crores by way of a soft loan to the Company. The soft loan from the promoters is interest free and subordinated to banks/ financial institutional loans and shall not be withdrawn till the end of the scheme period. The effects of rehabilitation .scheme, in terms of write-down in Shar....
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....The AO has taken a view which may be different from the view of the Ld. Commissioner and assuming that the view taken by the AO is a loss to the Revenue but the Hon'ble Supreme Court in Malabar Industrial Co. Ltd. (supra) has held that " every loss of revenue as a consequence of an order of the AO cannot be treated as prejudicial to the interest of the Revenue," for e.g. when an Income Tax Officer adopted one of the courses permissible in law and it has resulted in loss of revenue or where two views are possible and the Income Tax Officer has taken one view with which the Ld. Commissioner does not agree, it cannot be treated as an order which is erroneous or prejudicial to the interest of Revenue unless the view taken by the Income Tax ....