| |
| The Tax Publishers2020 TaxPub(DT) 3225 (Karn-HC) : (2020) 428 ITR 0299 INCOME TAX ACT, 1961
Section 263
Where AO failed to make any enquiry with regard to claim of assessee for deduction under section 80-IB(10), the CIT was justified in quashing the order passed by AO by invoking provisions of section 263 alleging that the order passed by the AO was erroneous and prejudicial to the interest of Revenue.
|
Revision under section 263 - Erroneous and prejudicial order - AO failed to make any enquiry with regard to claim of assessee for deduction under section 80-IB(10) -
Assessee claimed deduction under section 80-IB(10), which was allowed by AO. Subsequently, CIT found that no enquiry was conducted by the AO with regard to the claim of the assessee for deduction under section 80-IB(10) and accordingly, he concluded that the order of the AO was erroneous and prejudicial to the interest of Revenue. Therefore, the CIT quashed the order passed by the AO by invoking provisions of section 263. However, Tribunal set aside the order passed under section 263 alleging that invocation of section 263 on the ground of lack of enquiry with regard to claim of deduction made by the assessee under section 80-IB(10) could not be upheld. Held: It was evident that the AO did not make any enquiry with regard to the claim of the assessee for deduction under section 80-IB(10). Thus, the CIT invoked section 263 and held that the order passed by the AO was erroneous and prejudicial to the interest of Revenue. However, the Tribunal by placing reliance on decision of High Court in the case of CIT v. Hero Auto Ltd. (2012) 343 ITR 342 (Del) : 2012 TaxPub(DT) 1714 (Del-HC) held that invocation of section 263 on the ground of lack of enquiry regarding eligibility of assessee for deduction under section 80-IB(10) could not be upheld. It was pertinent to note that the said case on which the Tribunal placed reliance, was a case of inadequate enquiry. Therefore, the Tribunal grossly erred in law in applying the said decision to the instant case because the instant case was a case of lack of enquiry and not inadequate enquiry with regard to claim of the assessee for deduction under section 80-IB(10). Accordingly, the order passed by the Tribunal was quashed.
Distinguished:CIT v. Hero Auto Ltd. (2012) 343 ITR 342 (Del) : 2012 TaxPub(DT) 1714 (Del-HC)
REFERRED :
FAVOUR : Against the assessee
A.Y. : 2009-10
IN THE KARNATAKA HIGH COURT
 SUBSCRIBE FOR FULL CONTENT
|