2020 (12) TMI 401

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....e and in law, the learned Pr. Commissioner of Income Tax -25, erred in setting aside order by ACIT -25(1) u/s. 143(3) dated 23.12.2017 by invoking provisions of section 263 of I.T. Act, 1961." 2. The registry has noted a minor delay of 18 days in the appeal, the condonation of which has been sought by learned AR on the strength of affidavit of society officials. After going through the condonation petition and in view of the fact that there was a small delay, we are inclined to condone the delay and proceed with disposal of the appeal, on merits. 3. We have carefully heard the rival submissions and perused relevant material on record including submissions made by the assessee during assessment proceedings as well as during appellate proc....

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.... However, not convinced with assessee's submissions as well as explanations, ld. Pr.CIT opined that deduction could not be extended to income earned from any co-operative bank. Therefore, the assessment order was held to be erroneous and prejudicial to the interest of the revenue. Accordingly, Ld. AO was directed to redo the assessment in the light of observation made in the revision order. Aggrieved as aforesaid, the assessee is in further appeal before us assailing invocation of revisional jurisdiction u/s 263. 5. Upon careful consideration of material on record, we find that the assessee was subjected to limited scrutiny assessment vide notice dated 27/07/2016. One of the reasons for selection of scrutiny was deduction under Chapter-VI....

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.... to the interest of the revenue, unless the view taken by the Income-tax Officer is unsustainable in law. The said principal has been reiterated by Hon'ble Court in its subsequent judgment titled as CIT V/s Max India Ltd. (295 ITR 282). Similar principal has been followed by jurisdictional High Court in Grasim Industries Ltd. V/s CIT (321 ITR 92). The Hon'ble Delhi High Court, CIT V/s Vikas Polymers (194 Taxman 57 16/08/2010) observed that as regards the scope and ambit of the expression "erroneous", Hon'ble Bombay High Court in CIT vs. Gabriel India Ltd. [1993 203 ITR 108 (Bombay)], held with reference to Black's Law Dictionary that an "erroneous judgment" means "one rendered according to course and practice of Court, but contrary to ....