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2015 (8) TMI 1273 - ITAT CHANDIGARHRevision u/s 263 - deduction under section 80IB - Held that:- Assessing Officer did not make any enquiry or investigation at assessment stage so as to qualify deduction under section 80IB of the Act to the assessee on surrendered income as well as on job charges. The accounts of the assessee revealed that assessee declared income of ₹ 6 crores as business advances written off, therefore, it could not be said to have any nexus with the Industrial Undertaking of the assessee. The surrendered income was, therefore, undisclosed income from other sources and assessee failed to establish that source of unaccounted income invested in advances which were written off had any nexus with the Industrial Undertaking of the assessee. The assessee, during the course of survey as well as assessment proceedings have not filed any documentary evidence to establish that income of ₹ 6 crore has been earned through manufacturing activities eligible for deduction under section 80IB of the Act. Thus, the Assessing Officer has failed to make any enquiry or investigation on claim of assessee of deduction under section 80IB at the assessment stage on the above surrendered income as well as on job charges It is well settled law that failure by the Assessing Officer to make enquiry at assessment stage would render his order to be erroneous and prejudicial to the interest of revenue and jurisdiction under section 263 of the Act have been properly exercised by the Ld. Commissioner of Income Tax. Considering the totality of the facts and circumstances, it is clear that Assessing Officer has passed the assessment order without conducting enquiry and investigation and has allowed claim of assessee under section 80IB of the Act without making any enquiry and investigation. Therefore, the order was correctly treated as erroneous and prejudicial to the interest of revenue. The ld. CIT was, therefore, justified in setting aside the assessment order and directing the Assessing Officer to pass the assessment order afresh denovo by giving opportunity of being heard to the assessee. In this view of the matter, no further directions are required to the Ld. Commissioner of Income Tax in the matter as is argued by ld. counsel for the assessee. The appeal of the assessee has thus no merit. The same is accordingly, dismissed. - Decided against assessee
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