Mere Disagreement Doesn’t Justify invocation of Section 263 Revision Power: Madras HC
EIH Associated Hotels Limited Vs CIT (Madras High Court) Appeal Number : T.C.A. No. 1249 of 2010
Facts:
1. An order of assessment was passed on 30.11.2007 in respect of AY 05 – 06. While so, notice u/s 263 of the Income Tax Act dated 25.02.2010 had come to be issued, proposing revision of the assessment.
2. The issue raised by the CIT is relating to pre-closure premium which has also been examined by the AO.
3. The response to the audit objection reveals that Officer has applied his mind to the legal issue that arises, has considered the stand of the assessee and thereafter come to the conclusion that the claim of the appellant is correct and liable to be allowed.
Hon Madras HC held as below:
1. Mere disagreement with the view taken by the assessing authority would not be a sufficient ground for invoking power under Section 263.
2. It is quite another matter if the conclusion of the authority is palpably erroneous or contrary to settled law or judgment of the superior Courts.
3. However, in the present case, the conclusion of the assessing authority in his reply to the audit objection is tenable even on merits.
4. Invocation of revisionary power u/s. 263 for mere disagreement with the view of the assessing authority is unjustified in law.
The copy of the order is as under:
