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2015 (3) TMI 1227 - ALLAHABAD HIGH COURTAllowing exemption under Section 10B - revision u/s 263 - Held that:- Assessing Officer, under some misconception of fact or law, as the case may be, did not address himself to the applicability of Section 10B and proceeded on assumption that assessee has rightly claimed exemption under Section 10B(1) of Act, 1961. This wrong assumption on the part of Assessing Officer whether of fact or law, apparently was erroneous and also caused prejudice to the interest of Revenue, for the reason that tax lawfully payable to department on previous income, earned by assessee in the assessment year 2011-12 would stand lost, if assessment order is not revised. We therefore, have no hesitation in holding that the twin conditions for attracting Section 263(1) of Act, 1961, exist in the case in hand and therefore, to that extent Commissioner was justified in exercising power under Section 263(1) of Act, 1961 by issuing notice in question. We find that claim of assessee seeking exemption under Section 10B of Act, 1961 for assessment year 2011-12, was not doubted by Assessing Officer. Applicability of Section 10B of Act, 1961 for assessment year 2011-12, as claimed by assessee, was accepted by him. Thus, this aspect was not in appeal at any stage. It is only on the question of "quantum of profit" for which exemption was claimed that the appeal was filed. The Assessing Officer discussed the matter and found that instead of ₹ 4,97,28,163.45 which was claimed by assessee, it was entitled to exemption to the extent of ₹ 4,61,90,179.58 under Section 10B and there is taxable income of ₹ 3537980/-. On taxability of aforesaid amount, assessee preferred appeal and only that aspect was considered by CIT(A) as also Tribunal. At no stage, the issue whether assessee was entitled to claim exemption under Section 10B at all or not, having already exhausted beyond the period of exemption permissible under Section 10B, was not a subject matter of consideration before appellate authorities. Hence, this question was open to be looked into by Commissioner.
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