2012 (11) TMI 762 - UTTARAKHAND HIGH COURT - Income Tax

Head Note / Extract:
Power u/s 263 - erroneous decision - Applicability of sec 44BB - held that:- Assessing Authority did not at all make any endeavour to ascertain, whether Rs.96 and odd crores were received by the assessee for and in respect of services rendered by the assessee or the same was received only by way of sale price of goods/materials sold by the assessee, may be outside India. - There is no finding that the revenue received in respect of that service contract, in connection whereof Rs.96 and odd crores were received by the assessee, could be segregated from the service part or not. There was, therefore, failure on the part of the Assessing Officer to ascertain whether Rs.96 and odd crores revenue would or can come under Section 44BB of the Act - both the limbs of Section 263 of the Act stands satisfied, namely, there was error in the order of Assessing Authority, and that, the error caused prejudice to the revenue – Decided against the assessee.