| Case ID |
22f68fe9-0b46-4036-8433-9535fdc82515 |
| Body |
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| Case Number |
ITA NO. 39 OF 2004 |
| Decision Date |
May 18, 2004 |
| Hearing Date |
|
| Decision |
The Punjab and Haryana High Court upheld the decision of the Income-tax Appellate Tribunal, which had allowed the appeal of Max India Ltd. against the order passed by the Commissioner under section 263 of the Income-tax Act, 1961. The Tribunal found that the Assessing Officer had taken a possible view regarding the computation of deductions under section 80HHC, which was consistent with the views expressed by various Benches of the Tribunal. The court ruled that the Commissioner had no jurisdiction to interfere since the view taken was not erroneous, thus protecting the interests of the revenue. |
| Summary |
This case revolves around the application of section 263 of the Income-tax Act, 1961, specifically concerning the revision of orders that are prejudicial to the interest of revenue. The case highlights the importance of the Assessing Officer's discretion in allowing deductions under section 80HHC, which pertains to profits from exports. The Punjab and Haryana High Court emphasized that a view taken by the Assessing Officer is not erroneous simply because it results in a loss of revenue, provided that the view is legally sustainable. The decision of the Tribunal was deemed justified as the computation of deductions was in line with previous Tribunal decisions, showcasing the judicial principle that two permissible views do not warrant revision under section 263. The case reflects on the balance between the authority of the Commissioner and the Assessing Officer's discretion, thereby providing clarity on the jurisdictional limits of the Commissioner in revising assessments. |
| Court |
Punjab and Haryana High Court
|
| Entities Involved |
Max India Ltd.
|
| Judges |
N.K. Sud,
S.S. Grewal
|
| Lawyers |
R.P. Sawhney,
Kishan Singh
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Max India Ltd.
|
| Citations |
2004 SLD 2304 = (2004) 268 ITR 128
|
| Other Citations |
Malabar Industrial Co. Ltd. v. CIT [2000] 243 ITR 83 (SC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
263,
80HHC
|