Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (9) TMI 638 - ITAT BANGALOREJurisdiction u/s 263 – Jurisdiction of CIT - Doctrine of merger - Deduction u/s 80IB - Held that:- Deduction claimed by the assessee had been restricted by the Assessing Officer to the extent that deduction in respect of a part of profits relating to the income from sale of undivided interest of land - On appeal, this issue had been decided by the Commissioner of Income-tax (Appeals) - Inasmuch as the issue relating to deduction under section 80-IB of the Act the same had been seized by the Commissioner of Income-tax (Appeals) and after deliberation, he decided the issue in favour of the assessee - Thus, there was merger of the order of the Assessing Officer with that of the Commissioner of Income-tax (Appeals) - As rightly contended by the learned authorised representative for the assessee, there was no jurisdiction under section 263 of the Act available to the Commissioner of Income-tax. The Assessing Officer had considered the provisions of section 80-IB(10) in its totality and on the basis of which the Commissioner of Income-tax (Appeals) analysed the issue in depth and negated the stand of the Assessing Officer for the reasons recorded in his order - Thus, we are unable to agree with the Commissioner of Income-tax's perception that the Commissioner of Income-tax can revise u/s 263 on the question of eligibility of deduction under section 80-IB(10) since those were two different views by relying on the Delhi Tribunal's finding in the case of Modi Xerox Ltd. v. Deputy CIT [1998 (4) TMI 162 - ITAT DELHI-C ]. Following Commissioner of Income-Tax Versus Shri Arbuda Mills Ltd. [1996 (1) TMI 11 - SUPREME Court] - once the order of the Assessing Officer got merged with the appellate order of the Commissioner of Income-tax (Appeals) on a particular issue, the Commissioner of Income-tax cannot invoke the provisions of section 263 of the Act on the premise to verify the eligibility of deduction under section 80-IB since those were two different issues - The Assessing Officer had adopted one of the possible views in law, which has not been agreed upon by the Commissioner of Income-tax - the order passed by the Assessing Officer cannot be treated as erroneous order and prejudicial to the interests of the Revenue, thereby the provisions of section 263 of the Act have no role to play.
|