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| The Tax Publishers2019 TaxPub(DT) 2031 (Del-Trib) : (2019) 199 TTJ 0512 INCOME TAX ACT, 1961
Section 263
Where AO allowed deduction under section 80-IC after making proper enquiry in that regard, assessment order could not be held as erroneous and prejudicial and that too, without CIT having carried out any enquiry as regards the issue.
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Revision under section 263 - Erroneous and prejudicial order - CIT alleging lack of enquiry on AO's part -
CIT held assessment order to be erroneous and prejudicial to the interest of revenue on the ground that AO had not done any worthwhile enquiries before allowing deduction under section 80-IC.Held: AO had required assessee to furnish details regarding various streams of revenue along with details of manufacturing process, purchases, sundry creditors and bank statements, etc. Assessee had filed all the details as required and AO after examining all the details and being satisfied with net profit shown by eligible unit as well as the nature of expenses incurred by eligible and non-eligible units allowed deduction under section 80-IC. Therefore, assessment order could not be held as erroneous and prejudicial and that too, without CIT having carried out any enquiry as regards the issue.
Supported:CIT v. Sunbeam Auto Ltd. (2011) 332 ITR 167 (Del) : 2011 TaxPub(DT) 88 (Del-HC), Pr. CIT v. Modicare Ltd. 2017-TIOL-1946-HC-Del-IT : 2017 TaxPub(DT) 4212 (Del-HC) and ITO v. DG Housing Projects Ltd. 2012-TIOL-195-HC-DEL-IT : 2012 TaxPub(DT) 1727 (Del-HC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14
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