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2023 (2) TMI 1065 - ITAT RAJKOTRevision u/s 263 - Deduction u/s 80IC - HELD THAT:- Since this was the first year of claim of deduction by the assessee with respect to the Rudrapur unit u/s. 80IC of the Act, the Assessing Officer should have enquired into the eligibility of claim of deduction u/s. 80IC of the Act in detail during the course of assessment proceedings. Since this was the first year of claim of deduction, the AO should have enquired whether the Rudrapur unit was a new unit or whether it was merely an extension of existing unit, whether the conditions of splitting up or re-constitution of business have been satisfied etc. We observe that no specific query was made by the AO either by way of notice dated 14-09-2012 nor through any order sheet entry during the course of assessment proceedings with regard to claim of assessee u/s. 80IC - Though, the assessee submitted details relating to purchases, production and sales etc, however, no specific inquiry/investigation was made by the Assessing Officer as to the eligibility to the claim of the assessee in respect of the new unity u/s. 80IC for the Rudrapur unit. Accordingly, we are of the considered view that the AO has not enquired into eligibility of Rudrapur unit to claim deduction u/s. 80IC of the Act. No infirmity in the order of ld. PCIT by holding that the order passed by the Assessing Officer is erroneous and prejudicial to the interest of the Revenue and directing the Assessing Officer to conduct a proper inquiry and verification relating to the eligibility of the claim of the assessee in respect of profits of Rudrapur unit u/s. 80IC of the Act.Appeal of the assessee is dismissed.
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