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2012 (6) TMI 450 - AT - Income TaxValidity of revisionary order passed by CIT u/s 263 - order passed u/s 143(3) revised on ground that expenses incurred in foreign currency for rendering technical services outside India, were not deducted from the export turnover, resulting in excess allowance of deduction u/s 10A - Loss incurred by one of the STPI units was not set off against the business profits while computing the deduction allowable u/s 10A - assessee engaged in the business of Business Process Outsourcing (BPO) - Held that:- Assessment order was passed by the Assessing Officer after examination of details called for and furnished and on application of mind. The AO has examined the aspects of computation and allowability of deduction u/s 10A and has also examined the details called for in respect of foreign currency expenses. Also, there were judicial decisions in favour of the assessee on the issues dealt with by the CIT in the order passed u/s 263 as on the date of said order and which fact has been acknowledged by the CIT. Even otherwise, the issues dealt with by the CIT in the order passed u/s 263 are capable of two views and the AO has taken one of the possible views. It is settled law that when an officer adopts one of the courses permissible in law and it has resulted in a loss of Revenue or when two views are possible and the Assessing Officer takes one view with which the CIT does not agree, the order cannot be treated as erroneous in so far as it is prejudicial to the interests of Revenue. Hence, order passed by CIT u/s 263 is without jurisdiction and liable to be quashed - Decided in favor of assessee.
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