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2007 (11) TMI 610 - HC - Income TaxApplicability of section 80IA(3) - Offshore drilling - claim made in respect of section 33AC - Whether the 'Deep Sea Mat drill' purchased by the assessee is a ship or not - We are of the opinion that only one view is possible, namely, that the 'Deep Sea Matdrill' is a ship. Even if learned counsel for the revenue is right in contending that the 'Deep Sea Matdrill' is not a ship, we do not think that exercise of power u/s 263 of the Act by the CIT would be justified only because the assessing officer has taken a view in favour of the assessee. The law requires the view to be erroneous and that has not been substantiated by learned counsel for the revenue . Deduction u/s 80-IA(3) - We find that under section 148 of the Act, the assessing officer had specifically mentioned in the reasons recorded that he was prima facie of the view that the vessel had been used in the Indian territorial waters prior to its acquisition by the assessee. A response was given by the assessee to the notice in which it was categorically mentioned that the ship was never used in India so deduction u/s 80-IA(3) could not be denied to the assessee. In all the three issues that have been urged by learned counsel for the revenue , no substantial question of law arises. The appeal is dismissed.
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