TaxTMI 
TaxTMI 
2020 (9) TMI 876
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.... order dated 11.09.2013 on the following substantial question of law: (i) Whether the Tribunal was correct in holding that the order passed by the Assessing Officer in not excluding the expenditure incurred in foreign currency from export turnover for computing deduction under Section 10A of the Act was not erroneous and prejudicial to the interest of the revenue as the Assessing Officer has taken one possible view without taking into consideration that the controversy is not settled? (ii) Whether the Tribunal was correct in holding that the expenditure towards telecommunication charges and expenditure incurred in foreign currency reduced from export turnover has to be reduced from total turnover for computing deduction under Section 1....
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....ified the order of assessment by excluding the expenditure incurred in foreign currency from export turnover for computing deduction under Section 10A of the Act. 3. The assessee thereupon approached the Tribunal. The Tribunal by an order dated 22.02.2013 inter alia held that there were two views possible and the Assessing Officer has taken one view and therefore, in the facts of the case, the powers under Section 263 of the Act cannot be resorted to. Accordingly, the order passed by the Commissioner of Income Tax (Appeals) was set aside and the appeal of the assessee was allowed. 4. Learned counsel for the revenue submitted that the Tribunal erred in holding that the order passed by the Assessing Officer in not excluding the expenditure ....
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....n 263 of the Act firstly, the order of the Assessing Officer is erroneous and secondly, that it is prejudicial to the interest of the revenue on account of error in the order of assessment. 7. The aforesaid provision was considered by the Supreme Court in MALABAR INDUSTRIAL CO. LTD. VS. CIT', 243 ITR 43 SC and it was held that the phrase 'prejudicial to the interests of the revenue' has to be read in conjunction with an erroneous order passed by the Assessing Officer and every loss of revenue as a consequence of the order of the Assessing Officer cannot be treated as prejudicial to the interest of revenue. It was further held that where two views are possible and the Income Tax Officer has taken one view with which the Commissi....