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2014 (5) TMI 70 - ITAT DELHIValidity of proceedings u/s 263 of the Act – Withdrawal of deduction u/s 80IB(10) of the Act – Applicability of section 80AC of the Act – Held that:- The provisions of section 263 of the Income-tax Act, 1961 cannot be invoked only when the order of the AO is erroneous as well as prejudicial to the interest of revenue – Relying upon Malabar Industrial Co. Ltd. vs. CIT [2000 (2) TMI 10 - SUPREME Court] and CIT vs. Contimeters Electricals P. Ltd. [2008 (12) TMI 4 - HIGH COURT DELHI] - The order of Assessing Officer is dated 30.12.2009 - For the purpose of revision u/s 263 of the Act, the legal position at the time of passing the order by the AO is to be considered and not the legal position at the time of filing the return of income or after the finalization of assessment - at the time of passing the assessment order, two views were possible with regard to the claim of deduction u/s 80IB in view of provisions of section 80AC - The AO has adopted one of the courses permissible in law at the relevant time - where two views were possible and AO had taken one view and if CIT do not agree with it then he cannot invoke provisions of section 263 of the Act to revise the AO’s order – thus, the CIT was not justified in invoking the provisions of section 263 of the Act – Decided in favour of Assessee.
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