2018 (10) TMI 367

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.....10.2006, passed by the Income-tax Appellate Tribunal Madras "A" Bench, Chennai in ITA Nos.1456(Mds)/2002; and 804 & 805(Mds)/2008 respectively for the assessment years 1997-98, 1998-99 and 1999-2000. 2.The appeals have been admitted on the following substantial question of law:- "Whether, in the facts and circumstances of the case, the Tribunal was right in holding that an order cannot be treated as erroneous and prejudicial to the revenue, if there are conflicting orders of the Tribunal prevailing at that time?" 3.Tax Case (Appeal) Nos.1037 to 1040 of 2008 have been filed by the Revenue challenging the giving effect to the order passed by Commissioner under Section 263 of the Income Tax Act, 1961 (hereinafter referred to as....

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....th the twin conditions are required to be satisfied, viz., that the assessment order should be erroneous and it should be prejudicial to the interest of the Revenue. 7.In the said decision, the Hon'ble Supreme Court also held that if there are two views possible and the Assessing Officer has followed one of the views, it cannot be treated to be an erroneous order. In the instant case, the Assessing Officer allowed netting of interest to the assessee. 8.According to the Commissioner, this was erroneous and prejudicial to the interest of Revenue. The Commissioner pointed out that the decisions of the Jurisdictional High court in the case of K.S.Subbiah Pillai & Co. (India) Pvt. Ltd. vs. CIT [(2003) 260 ITR 304 (Mad.)] and in the cas....

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.... that extent, we find that the Assessing Officer did not maintain judicial discipline as has been pointed out by the Hon'ble Supreme Court in Union of India And Others vs. Kamlakshi Finance Corporation [1991 (55) ELT 433 (SC)]. However, this issue has become academic in the instant case. The Court need not probe into the fact as to whether the Assessing Officer has faulted or not, since the decision taken by the Assessing Officer has now been upheld by the Hon'ble Supreme Court in ACG Associated Capsules (P) Ltd. vs. Commissioner of Income Tax [(2012) 247 CTR 0372]. The operative portion of the said decision reads as follows:- '14..........In this case, this Court held that the processing charges received by the assesse....