Dismissing the appeal of the revenue the Court held that when the development expenses as considered by the Assessing Officer were the subject matter of appeal and the Commissioner (Appeals) After considering the material, the Assessing Officer chose not to make any addition on the item pertaining to commission. The Tribunal was right in holding that the Commissioner was not justified in exercising the revisional powers under section 263 to upset the order passed by the Assessing Officer which stood merged with the order passed by the Commissioner (Appeals). (AY. 2008-09, 2009 -10)
CIT v. H. Nagaraja. (2018) 406 ITR 242 (Karn) (HC)
S. 263 : Commissioner – Revision of orders prejudicial to revenue – Commissioner (Appeals) — Merger- Development expenses –Commission- Orders passed by Assessing Officer was merged with order of CIT(A) – Revision order is held to be not valid