Every loss of revenue cannot be treated as prejudicial to the interest of revenue and if the assessing officer has adopted one of the courses permissible under law or where two views are possible: Jammu Kashmir and Ladakh High Court

The Jammu Kashmir and Ladakh High Court passed a judgement on the 23rd of December, 2022 in which the appeal failed and was hence dismissed. This was seen in the case of Principal Commissioner Of Income … vs M/S. Britannia Industries (ITAT NO. 211 OF 2022). The case was presided over by The Honourable Mr Justice T.S. SIVAGNANAM and The Honourable Mr Justice HIRANMAY BHATTACHARYYA.



This appeal by the revenue filed under Section 260A of the Income Tax Act, 1961(the Act) is directed against the order passed by the Income Tax Appellate Tribunal Bench Kolkata for the assessment year 2016-2017.

The revenue has raised the following substantial questions of law for consideration: –

  • Whether the Learned Tribunal is justified in setting aside the order under Section 263 of the said Act passed on the ground that the Assessing Officer had already conducted an enquiry on the issues on which the order
  • Whether the provisions of Section 263 of the said Act can be invoked in the case where the Assessing Officer though makes thorough enquiry, ignores to appreciate that deductions claimed by the assessees are not in consonance with the provisions of law and it is found that the Assessing Officer failed to apply his mind

The assessee in their response stated that the allegation is factually incorrect. Further, the assessee stated that the assessing officer had made due enquiries on the said issue and after being satisfied that the excess sum has been added back to the total income the assessment was completed.


The court finds that no questions of law much fewer substantial questions of law arise for consideration in this appeal. Accordingly, the appeal fails and was dismissed.

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