TaxTMI 
TaxTMI 
2019 (9) TMI 1350
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.... in the hands of the assessee for the year under consideration was completed by the assessing officer u/s 143(3) of the Act on 28-03-2014. The Ld Pr. CIT, upon examination of record, took the view that the assessment order passed by the AO is erroneous and prejudicial to the interests of revenue. Accordingly, he revised the assessment order on the following issues:- (a) Claim for deduction of expenditure claimed as "Good will". (b) Disallowance u/s 43B of the Act in respect of unpaid duties and taxes. (c) Interest income accrued on deposits. The assessee is aggrieved by the revision order passed in respect of claim of Good will amount. 3. The Ld A.R submitted that the assessee is a dealer in Tupperware products in part of Myso....
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....R submitted that the AO did not examine this issue at all during the course of assessment proceedings and hence the same constitute mistake apparent from record. Since the Good Will amount is capital expenditure, the same cannot be allowed as deduction. The Ld CIT-DR further submitted that the Ld Pr. CIT has only directed the AO to examine the claim in accordance with the law. Accordingly Ld CIT-DR submitted that the revision order passed by Ld Pr. CIT on the above said issue cannot be found fault with. 5. We heard the rival contentions and perused the record. Before going into the merits of the issue, we would like to discuss about the legal position with regard to the power of Learned CIT to invoke revision proceedings under section 263 ....
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....ssumption of fact or an incorrect application of law, will satisfy the requirement of the order being erroneous. An order passed in violation of the principles of natural justice or without application of mind, would be an order falling in that category. The expression "prejudicial to the interests of the Revenue", the Supreme Court held, it is of wide import and is not confined to a loss of tax. What is prejudicial to the interest of the Revenue is explained in the judgment of the Supreme Court (headnote) : "The phrase 'prejudicial to the interests of the Revenue' has to be read in conjunction with an erroneous order passed by the Assessing Officer. Every loss of revenue as a consequence of an order of the Assessing Officer, cannot be tr....