View taken on the basis of law prevailing on the date of order cannot be termed as erroneous

Brief– High Court of Bombay at Goa held in the case of CIT vs. V. S. Dempo & Company Ltd. Held that view taken by the Assessing Officer or by the Commissioner has to be on the basis of the law prevailing on the day the view was taken. The view taken by the Assessing Officer on the basis of the law as it then stood was a possible view. Thus, the exercise of jurisdiction under Section 263 of the Act by the Commissioner of Income Tax was not justified. Brief about case The appellant filed its return of income for the A.Y. 1996-97 declaring its total income Rs.7.71 crores. The A.O. deter...