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2012 (10) TMI 1048 - AT - Income TaxRevision u/s 263 - deduction u/s 10A admissibility - Held that:- AO has not at all examined as to how the assessee has computed the claim u/s.10A in relation to normal provisions of the Act and also while computing the book profit for the purpose of section 115JB of the Act. AO, it appears, has mechanically accepted the claim of the assessee. There is no material before us that AO has scrutinized the claim of the assessee which he was required to scrutinize in the facts and circumstances of the case. AO is not expected to act mechanically or put blinkers on his eyes. The Apex Court has held in the case of Malbar Industrial Co. (2000 (2) TMI 10 - SUPREME Court) and the other authorities referred to above that an order passed without applying the principles of natural justice or without application of mind renders the order erroneous and prejudicial to the interest of the revenue. In the case before us, AO has not even discussed whatsoever briefly about the claim of deduction of the assessee It cannot, therefore, be said that the order passed by him is a reasoned order conforming to the principles of natural justice. Therefore, we are of the considered view that it cannot be said that the AO has allowed the claim of deduction u/s.10A after application of mind as the application of mind is best reflected in the finding recorded in the assessment order. - Decided against assessee
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