When AO Has Taken One Of The Possible Views The PCIT Is Prohibited From Adopting Different View: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal, while quashing the revision order, held that when the Assessing Officer has taken one of several possible views, the Principal Commissioner of Income Tax is prohibited from adopting a different view.The two-member bench of Aby V. Varkey and B.R. The Mumbai Bench of the Income Tax Appellate Tribunal, while quashing the revision order, held that when the Assessing Officer has taken one of several possible views, the Principal Commissioner of Income Tax is prohibited from adopting a different view. Baskaran relied on the decision of the Supreme Court in the case of Malabar Industrial Co., Ltd. v. CIT, in which it was ruled that if the AO has taken one of the possible views, then the assessment order cannot be considered to be prejudicial to the interests of revenue merely for the reason that the PCIT has a different view on the very same matter. The assessee contended that the view taken by the AO is one of the possible views, and merely because the PCIT holds a different view of the matter, the assessment order cannot be held to be erroneous and prejudicial to the interests of revenue.