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Section 263 of the Income-tax Act, 1961 - Revision - Of orders prejudicial to interest of revenue - Assessment year 1992-93 - For relevant assessment year, assessee-company had claimed deduction under section 80HHC which was allowed by Assessing Officer - Subsequently, Commissioner observed that while working out deduction under section 80HHC there was a negative figure of profit at one stage which had been ignored by Assessing Officer and thereby excess deduction under section 80HHC had been allowed - Therefore, by invoking provisions of section 263, he set aside assessment framed by Assessing Officer directed Assessing Officer to recompute deduction under section 80HHC - On appeal, Tribunal held that computation made by Assessing Officer was in accordance with view expressed by various Benches of Tribunal; since view taken by Assessing Officer was a possible view, Commissioner had no jurisdiction to exercise power under section 263 and to treat order to be erroneous in any manner - Whether order of Tribunal was right - Held, yes FACTS The assessee-company in its return of income, claimed deduction under section 80HHC. The Assessing Officer allowed the assessee's claims. However, on a perusal of the record, the Commissioner observed that while working out the deduction under section 80HHC, there was a negative figure of profit at one stage which had been ignored by the Assessing Officer and thereby, excess deduction under section 80HHC had been allowed. Accordingly, he invoked the jurisdiction under section 263 and held that the order passed by the Assessing Officer was erroneous inasmuch as it was prejudicial to the interest of the revenue, and consequently, set aside the assessment framed by the Assessing Officer under section 143(3) and directed him to recompute the deduction under section 80HHC. On appeal, the Tribunal held that the computation made by the Assessing Officer was in accordance with the view expressed by various Benches of Tribunal, and since the view taken by the Assessing Officer was a possible view, the Commissioner had no jurisdiction to exercise power under section 263 and treat the order to be erroneous in any manner. On revenue's…

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