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2007 (6) TMI 185 - HC - Income TaxOrder passed by Commissioner u/s 263 - Tribunal have a right to holding the Commissioner revising the assessment order u/s 263 - export turnover - exemption on the entire profit u/s 10B - HELD THAT:- Section 263 of the Act can be invoked only if the order of the Assessing Officer is erroneous and prejudicial to the interests of the Revenue. The said two conditions must be satisfied before assuming jurisdiction u/s 263 of the Act. It is seen from the records that the domestic sales did not exceed 25 per cent of the total turnover. As per the second proviso to section 10B applicable for the assessment year, the profits and gains derived from such domestic sales of computer software which did not exceed 25 per cent of total sales shall be deemed to be the profits and gains from the export of computer software. The statement of computation in accordance with the proviso which would result in entire income being eligible for deduction u/s 10B was placed before the Tribunal and on this basis the Tribunal held that the assessment was neither erroneous nor prejudicial to the interests of the Revenue. It is clear that two views are possible in the matter. The Assessing Officer preferred one view against the another view. The Assessing Officer followed a particular view and hence it cannot be said that the order is erroneous or prejudicial to the interests of the Revenue. The Tribunal correctly followed the principles enunciated in the Supreme Court judgment in the case of Malabar Industrial Co. Ltd. v. CIT[2000 (2) TMI 10 - SUPREME COURT], wherein the scope of section 263 was considered. In view of the same, we find no error or illegality in the order of the Tribunal so as to warrant interference. Thus, no substantial questions of law arise for consideration of this court and accordingly the tax case is dismissed.
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