Case Law Details
Surjeet Singh Vs PCIT (ITAT Chandigarh)
ITAT held that CIT Cannot exercise Revisionary Powers under Section 263 of Income Tax Act arbitrarily without satisfying twin conditions necessary for exercising of powers.
Facts- The AO passed an order u/s 143(3) dated 19.05.2017 wherein addition was made in regard to a Long Term Capital Gain where certain discrepancy in sale proceeds of SCF sold was noticed by the Assessing Officer. This order is set aside by the ld. PCIT by an order u/s 263 dated 19.05.2017. Assessee is aggrieved.
Conclusion- Hon’ble Supreme Court in the case of CIT vs. Max India in the context of section 263 proceedings has held that Every loss of revenue as a consequence of an order of the assessing officer, cannot be treated as prejudicial to the interests of the revenue. Where two views are possible and the Income Tax Officer has taken on view with which the Commissioner does not agree, it cannot be treated as an erroneous order prejudicial to the interests of the revenue unless the view taken by the Income Tax Officer is unsustainable in law.
Held that the Revisionary Powers cannot be exercised arbitrarily. The twin conditions necessary for exercising the powers in the facts of the present case are found to be missing.
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