HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 682 of 2014 Date: 27.11.2014 Between:
Commissioner of Income Tax-II, Hyderabad.
… Appellant And M/s. E.P. Industrial & Agro Chemicals Private Limited Hyderabad.
… Respondent This Court made the following:
THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 682 of 2014 JUDGMENT: (Per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is sought to be preferred and admitted against the judgment and order of the learned Tribunal dated 06.06.2014 in relation to the assessment year 2007-2008 on the following suggested question of law.
“In the facts and circumstances of the case, whether the Hon’ble Tribunal (ITAT) is not perverse and correct in law in quashing the orders of the Commissioner of Income Tax issued under Section 263 of the Income Tax Act, 1961 when the subject assessment order was erroneous and prejudicial to the interest of the revenue for the facts and reasons mentioned in the said orders of the Commissioner of Income Tax?”
Mr. B. Narasimha Sarma, learned counsel for the appellant, urged to admit the appeal on the aforesaid ground. We are unable to do so, as we notice that the learned Tribunal has found that the Commissioner of Income Tax (Appeals) has no jurisdiction under Section 263 of the Income Tax Act, 1961 (for short, “the Act”) in order to substitute his opinion in place of the Assessing Officer’s opinion.
When two views and opinions are possible and if one view is taken up by the Assessing Officer, it is settled law that invocation of power under Section 263 of the Act by the Commissioner of Income Tax (Appeals) is not called for and the learned Tribunal has also taken note of the same made by various judicial pronouncements. Therefore, we are of the view that the learned Tribunal is right in quashing the order of the Commissioner and granting relief.
Accordingly, the appeal is dismissed. No order as to costs.
K.J. SENGUPTA, CJ SANJAY KUMAR, J
Date: 27.11.2014 ES