ITR
Officer took a possible view on the issue
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Facts
Where the assessing officer adopted one of two possible views after considering the facts, courts have generally held that revision cannot be used just because the senior officer prefers the other view.
Provisions and law
- Sec 263, Income-tax Act 1961 (now Sec 377, Income-tax Act 2025)The Principal Commissioner or Commissioner can revise an assessment order that is erroneous and prejudicial to revenue, after giving a hearing, within 2 years from the end of the financial year of the order.
Analysis
Show that the issue has more than one legally tenable answer, citing decisions that support the officer's view. Show the officer applied mind, through questions asked and replies considered. This is often the strongest defence in revision cases. Keep the reply factual and attach the case law relied on.
Conclusion
- Find decisions that support the view taken.
- Show the officer examined the issue.
- Explain that two views were possible.
- Attach copies of decisions and records.
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Revision, Sec 263 (now 377)
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