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2013 (3) TMI 147 - AT - Income TaxRevision u/s 263 - assessment order as erroneous and prejudicial to the interest of the Revenue - held that:- In view of the above facts and case laws of Tata Tea Ltd. [2010 (1) TMI 743 - KERALA HIGH COURT] and Girnar Industries (2009 (8) TMI 676 - KERALA HIGH COURT), as referred by the Ld. Counsel the case law of Hon’ble Supreme Court in the case of Malabar Industrial Co. Ltd. Vs. CIT (2000 (2) TMI 10 - SUPREME COURT), is applicable to the facts of this case. Hon’ble Supreme Court has considered the phrase ‘prejudicial to the interest of the revenue’, and interpreted that it has to be read in conjunction with an erroneous order passed by the AO and every loss of revenue as a consequence of an order of AO, it cannot be treated as prejudicial to the interest of revenue. Assessment order passed u/s. 143(3) of the Act after due consideration of facts as well as the revision order of CIT passed u/s. 263 of the Act that there is no dispute regarding the fact that the assessee is exclusively engaged in blending and packaging of tea for export and is not manufacturing or producing any other article or thing but still it is recognised as a 100% EOU unit by a Board appointed by central government in exercise of powers conferred u/s. 40 of the Industries (Development & Regulation) Act, 1951 and the Rules made thereunder. The view taken by the AO is not unsustainable rather it is a view which is sustainable - Decided in favor of assessee.
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