Itta/682/2014 Of Commissioner Of Income Tax-Ii v. M/S Ep Industrial And Agro Chemicals Pvt Ltd

HIGH COURT OF JUDICATURE AT HYDERABADFOR THE STATE OF TELANGANA AND THE STATE OF ANDHRAPRADESH THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAANDTHE 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 LimitedHyderabad. … Respondent This Court made the following: THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAANDTHE 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 thejudgment and order of the learned Tribunal dated 06.06.2014 in relation tothe assessment year 2007-2008 on the following suggested question oflaw. “In the facts and circumstances of the case, whether theHon’ble Tribunal (ITAT) is not perverse and correct in law in quashingthe orders of the Commissioner of Income Tax issued under Section263 of the Income Tax Act, 1961 when the subject assessment orderwas erroneous and prejudicial to the interest of the revenue for thefacts and reasons mentioned in the said orders of the Commissionerof Income Tax?” Mr. B. Narasimha Sarma, learned counsel for the appellant,urged to admit the appeal on the aforesaid ground. We are unable to doso, as we notice that the learned Tribunal has found that theCommissioner of Income Tax (Appeals) has no jurisdiction under Section263 of the Income Tax Act, 1961 (for short, “the Act”) in order tosubstitute his opinion in place of the Assessing Officer’s opinion. When two views and opinions are possible and if one view istaken up by the Assessing Officer, it is settled law that invocation ofpower under Section 263 of the Act by the Commissioner of Income Tax(Appeals) is not called for and the learned Tribunal has also taken noteof the same made by various judicial pronouncements. Therefore, we areof 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 Date: 27.11.2014ES ___________________SANJAY KUMAR, J