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M/S. The Malabar Industrial Co. Ltd vs Commissioner Of Income-Tax, Kerala ... on 10 February, 2000

10. Further we, rely on the decision of Malabar Industrial Co. Ltd. Vs. CIT (243 ITR 83), the Supreme Court held that the phrase "prejudicial to the interests of the Revenue" had to be read in conjunction with an erroneous order passed by the AO, that every loss of revenue as a consequence of an order of the AO cannot be treated as prejudicial to the interests of the Revenue, for example, when an AO adopted one of the courses permissible in law and it had resulted in loss of revenue; or where two views were possible and the AO had taken 9 ITA.No.1031/Hyd/2014 Mr. Sanka Venkata Rama Rao, Paloncha, Khammam Dist., one view with which the CIT did not agree, it could not be treated as an erroneous order prejudicial to the interests of the Revenue, unless the view taken by the Income Tax Officer was unsustainable in law.
Supreme Court of India Cites 12 - Cited by 2080 - S S Quadri - Full Document

Commissioner Of Income-Tax vs Kerala Nut Food Co., P. Gopinatha ... on 2 April, 1991

12. We also rely on the decision of the jurisdictional High Court in the case of CIT vs. Anand Food Products wherein it was held that where the AO has made inquiries on issues under consideration, assessee had given detailed explanation by a letter furnishing data, the Court concluded that the decision of the AO cannot be prejudicial to the interests of the Revenue, simply because he did not make detailed discussion.
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