The Ahmedabad Bench of the Income Tax Appeal Tribunal (ITAT) has ruled that a mere change of opinion cannot be grounds for invoking review jurisdiction under Section 263 of the Income Tax Act of 1961.
The assessee had filed a tax return for the disputed tax year, i.e. 2015-2016, declaring total income of Rs. 18,98,080/- and farming income of Rs. 54, 41,480/- which was accepted in the evaluation of the examination made u/s. 143(3) of the law see order of 22-11-2017. Thereafter, by going through the evaluation files, the ld. Prof. The CIT noted the following errors in the AO’s order that the assessment officer failed to verify whether the farm expense claim was commensurate with farm income.
While allowing the assessee’s plea, ITA Vice President Rajpal Yadav and Accounting Member Annapurna Gupta found that the bench of ITA Ahmedabad in M/s Sitaram J Gavli, Silvasa vs Agent of the income tax held that when review powers were exercised to direct a detailed farming investigation expenses incurred argued that when the AO accepted farm income after conducting due investigations, no review under section 263 cannot be made and that it amounted to a mere change of opinion for which powers of review cannot be exercised.
“In view of the foregoing, we are convinced that there is no finding of error by Pr.CIT in the order issued by the AO. The order made in u/s 263 is therefore set aside,” the court said.
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