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| The Tax Publishers2019 TaxPub(DT) 3734 (Ind-Trib) INCOME TAX ACT, 1961
Section 263 Section 10A
It remains an undisputed fact that AO had made adequate enquiries and adopted one of permissible view for allowing assessee's claim for exemption under section 10A before setting off brought forward and current year loss. Though CIT took a different view of the matter, however, that would not be sufficient to permit CIT to exercise power under section 263 because when two views were possible and CIT did not agree with the view taken by AO, assessment order could not be treated as erroneous and prejudicial to the interest of the revenue unless view taken by AO was not acceptable in law.
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Revision under section 263 - Erroneous and prejudicial order - AO having allowed deduction under section 10A without setting off brought forward and current year loss -
CIT sought to revise assessment order under section 263 on the ground of AO having allowed deduction under section 10A without setting off brought forward and current year loss.Held: It remains an undisputed fact that AO had made adequate enquiries and adopted one of permissible view for allowing assessee's claim for exemption under section 10A before setting off brought forward and current year loss lsos.Held: Though CIT took a different view of the matter, however, that would not be sufficient to permit CIT to exercise power under section 263 because when two views were possible and CIT did not agree with the view taken by AO, assessment order could not be treated as erroneous and prejudicial to the interest of the revenue unless view taken by AO was not acceptable in law.
REFERRED : CIT & Anr. v. Yokogawa India Ltd. (2017) 391 ITR 274 (SC) : 2016 TaxPub(DT) 5139 (SC).
FAVOUR : In assessee's favour.
A.Y. : 2011-12
INCOME TAX ACT, 1961
Section 263
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