The Indore Bench of Income Tax Appellate Tribunal ( ITAT ) held that the revision order cannot be based on a mere change of opinion.
Smt. Anupama Asawa, the assessee’s income tax return for the assessing year 2017-18 was filed, declaring total income at Rs.14,63,470/-. The case of the assessee was selected for Limited Scrutiny through computer-assisted scrutiny selection (CASS) for examination of an issue related to ‘Deduction/ Exemption from capital gains’.
The assessing officer completed the assessment and passed the assessment order under section 143(3) of the Income Tax Act,1961. Assessing total income at Rs.14,63,470/-. Subsequently, the Principal Commissioner of Income-Tax (PCIT) invoked the provisions of section 263 of the Income Tax Act, 1961 and issued the following show cause notice to the assessee
In reply to the said show cause notice, the assessee made detailed submissions and also filed various documentary evidence before the PCI, the council for the assessee raised specific queries during the course of assessment proceedings requiring the assessee to justify the deduction claimed under section 54B and 54F of the Income Tax Act, 1961.
The Assessing officer specifically required the assessee to justify the deduction claimed u/s 54B and 54F of the Act in her income-tax return which was duly replied to and explained with the help of ample corroborative documentary evidence. Hence, the Counsel for the assessee submitted that there was no justification for invoking the revisionary jurisdiction vested under section 263 of the Income Tax Act, 1961. The departmental Representative vehemently argued supporting the order of PCIT.
The Coram comprising the judicial member Ms Madhumita Roy and the accountant member Shri Bhagirath Mal Biyani observed that the original assessment order has been passed under Section 143(3) of the Income Tax Act,1961 by the assessing officer after due verification of the same issue as raised in the order impugned passed under Section 263 of the Income Tax Act,1961 and that too upon causing exhaustive enquiry and finalizing the same after taking a possible view, the invocation of provision of Section 263 of the Income Tax Act on the basis of change of opinion is not found to be sustainable.
Further, when one possible view has been taken by the assessing officer the said cannot be treated as erroneous and prejudicial to the interest of the revenue. The Appeal was allowed.
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