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The Tax Publishers2021 TaxPub(DT) 0324 (Sur-Trib) INCOME TAX ACT, 1961
Section 263
When show cause notice under section 263 on similar ground for revising assessment order for assessment year 2009-10 had been set aside by High Court and by accepting the order of High Court similar revision proceedings initiated on similar show cause notice for three subsequent assessment years, had already been dropped by revenue, therefore, it was not open for revenue or to Pr. CIT to deviate from such decisions. Accordingly, invocation of jurisdiction under section 263 was not justified.
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Revision under section 263 - Erroneous and prejudicial order - Invocation of jurisdiction by Pr. CIT -
Pr. CIT treated order passed by AO as erroneous and prejudicial to interest of revenue on the ground that interest expenses incurred by assessee in the form of payment of interest on borrowings from foreign banks for the purpose of making investment in share capital of subsidiary companies outside India, were wrongly claimed as an item of expenditure under section 57(iii) and AO wrongly allowed such interest expenditure. Assessee contended that grounds of appeal raised in instant appeal was directly covered by the decision of Gujarat High Court in assessee's own case for assessment year 2009-10 wherein similar show cause notice under section 263 was challenged by assessee in a Special Civil Appeal No. 4036 of 2016 and the show cause notice for assessment year 2009-10 was set aside. Held: When show cause notice under section 263 on similar ground for revising assessment order for assessment year 2009-10 had been set aside by High Court and by accepting the order of High Court similar revision proceedings initiated on similar show cause notice for three subsequent assessment years, had already been dropped by revenue, therefore, it was not open for revenue or to Pr. CIT to deviate from such decisions. Accordingly, invocation of jurisdiction under section 263 was not justified.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
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