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2017 (1) TMI 1526 - AT - Income TaxRevision u/s.263 - not to allow deduction u/s. 80IB(10) while computing book profit u/s.115JB - Held that:- In the instant case assessee was undisputedly entitled for deduction u/s.80IB(10) in respect of housing profit. Accordingly AO while framing scrutiny assessment order allowed the same out of normal income as well as while computing book profit. However, according to the Ld. CIT, the assessee is liable to pay the MAT on the profit earned u/s.80IB(10). In terms of the decision of Supreme Court in case of Max India (2007 (11) TMI 12 - Supreme Court of India) whenever two views are possible and the AO has taken one view, with which the CIT does not agree, it cannot be treated as an erroneous order, prejudicial to the interests of the Revenue. In this regards, explanation 2(d) under section 263 specifically states that revision is possible only due to judgments of the jurisdictional High Court or supreme court. Further, the assessee has placed the reliance on the various decision where the ratio was laid down were in favour of the assessee. The considerable favourable view was available. Therefore, as there were two views were available, the Ld. CIT should not be allowed to invoke the powers u/s.263. If the answer of the above refereed question held as yes, then the Ld. CIT will invoke power in each and every cases and will create a huge mess. Therefore, the power of CIT is restricted to the decision of the jurisdiction high court or Supreme Court which were overlooked by the assessing authority. - Decided in favour of assessee
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