TaxTMI 
TaxTMI 
2017 (5) TMI 1110
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....rder dated 13.01.2016 passed by Income Tax Appellate Tribunal, Lucknow Bench Lucknow (hereinafter referred to as 'Tribunal') in ITA No.308/Lkw/2015. 3. Following substantial questions of law have been addressed for adjudication of this appeal :- 1. Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT was justified in quashing the order u/s 263 of the I.T. Act and confirming the order u/s 143(3) of the Income Tax Officer, 3(2), Lucknow. 2. Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT was justified in authenticating that the Development Fund in which receipts were in the form of Development Fees from the students, and was not the Capitation fees, as the same ha....
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....and prejudicial to the interest of Revenue. Commissioner has to be satisfied on existence of twin conditions i.e. (i) Order of Assessing Officer sought to be revised is erroneous, and (ii) It is prejudicial to the interest of Revenue. 8. If any one of them is absent, Section 263 of Act, 1961 would not be attracted. It was also held in Malabar Industrial Co. Ltd. (supra) that this power of revision cannot be invoked in respect to each and every mistake or error committed by Assessing Officer. It is only when an order is erroneous and prejudicial to the interest of Revenue,, then Section 263 of Act, 1961 will be attracted. An incorrect assumption of fact or an incorrect application of law will satisfy the requirement of order being 'er....
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....ous' should be read in conjunction with phrase "prejudicial to the interest of Revenue". 11. Recently, it has also been considered by this Court in CIT, Meerut Vs. Shri Anand Kumar Jain, ITA No.143 of 2014, decided on 3.11.2014, and in the circumstances in which Commissioner can exercise powers under Section 263 has been explained as under:- "Hence, it is well settled that every loss of revenue in consequence of an order of the Assessing Officer cannot be treated as prejudicial to the interests of the revenue. For example, when an Assessing Officer adopts one of the courses permissible in law or where two views are possible of which the Assessing Officer has taken one view, the Commissioner cannot exercise jurisdiction under Section ....