Case Of Vikshara Training & Investment Ltd v. Dcit Reported In 99 Taxman 229 (Ahd.) And A

AGK IN THE HIGH COURT OF JUDICATURE AT BOMBAY AGK ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.658 OF 2008 The Commissioner of Income-tax, Central - III ..Appellant. V/s. M/s.Wimco Pen Company ..Respondent. Mrs.Poonam P. Bhosale with Mr.B.M. Chatterjee for the Appellant. Ms.Vasanti B. Patel for the Respondent. CORAM : D.K. DESHMUKH & J.P. DEVADHAR, JJ. DATED : 14TH OCTOBER, 2008. P.C. : 1. The question raised in this appeal is, whether the tribunal is justified in setting aside the order of CIT passed under Section 263 of the Income Tax Act. The tribunal has held that since the assessment order was passed by following the decision of the I.T.A.T., Ahmedabad Bench in the case of Vikshara Training & Investment Ltd. Vs. DCIT reported in 99 Taxman 229 (Ahd.) and a decision of Karnataka High Court in the case of Sterling Food reported in 190 ITR 275 which was in favour of the assessee and there was no decision to the contrary, the CIT could not have held that the assessment was erroneous and prejudicial to the interest of the revenue. 2. The Apex Court in the case of Commissioner of Income-tax V/s. G.M. Mittal Stainless Steel P. Limited reported in 263 ITR 255 has held that if the Assessing Office follows the decision prevailing at the time of assessment, the CIT cannot invoke Section 263 of the Income Tax Act. 3. In this view of the matter, we see no merit in the appeal. Hence, rejected. D.K. DESHMUKH, J. J.P. DEVADHAR, J.