Itxa/6633/2010 Of The Commissioner Of Income Tax-4, Mumbai v. Red Rose Textiles Industries Pvt. Ltd

sas IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.6633 OF 2010 The Commissioner of Income Tax-4, Mumbai ..Appellant. V/s. Red Rose Textiles Industries Pvt. Ltd. ..Respondent. Mr. Vimal Gupta for the appellant. Mr. Atul K. Jasani for the respondent. CORAM : J.P. DEVADHAR AND A.A.SAYED, JJ. DATED : 19TH JULY, 2011 P.C. :- 1.Whether the ITAT was justified in cancelling the order of the CIT passed under Section 263 of I.T. Act, is the question raised in this appeal. 2.The finding of fact recorded by the ITAT is that the assessment order was passed based on a binding decision of the ITAT which was in favour of the assessee. In such a case, the ITAT held that the assessment order could not be said to be erroneous or prejudicial to the interest of the revenue so as to invoke jurisdiction under Section 263 of the Act. Accordingly, the ITAT cancelled the order of CIT passed under Section 263 of the Act. 3.In our opinion, no fault can be found with the aforesaid decision of the ITAT. Hence, the appeal is dismissed with no order as to costs. (A.A. SAYED, J.) (J.P. DEVADHAR, J.)