The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) has held that a mere change of opinion cannot be a ground for invoking revisional jurisdiction under section 263 of the Income Tax Act, 1961.
The assessee had filed return of income for the impugned assessment year, i.e. 2015-16, declaring total income of Rs. 18,98,080/- and agricultural income of Rs. 54,41,480/- which was accepted in scrutiny assessment made u/s. 143(3) of the Act vide order dated 22-11-2017. Thereafter on going through the assessment records, the ld. Pr. CIT noted the following errors in the order of the AO that the Assessing Officer had failed to verify whether the claim of agricultural expenses was commensurate with the agricultural income.
While allowing the plea of the assessee, ITAT Vice President Rajpal Yadav and Accountant Member Annapurna Gupta found that the ITAT Ahmedabad Bench in M/s Sitaram J Gavli ,Silvasa vs Income Tax Officer held that where revisionary powers were exercised for directing detailed inquiry on agricultural expenses incurredheld that where the AO had accepted agricultural income after conducting due inquiries no revision under section 263 can be done and that it tantamounted to mere change of opinion for which revisionary powers cannot be exercised.
“In view of the above,we are convinced that there is no finding of error by the Pr.CIT in the order passed by the AO. The order passed u/s 263 is therefore set aside,” the Tribunal said.
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