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2015 (1) TMI 778 - AT - Income TaxReopening of assessment - computation of exemption u/s 10B based on apportionment of expenses between eligible and non eligible units - Held that:- We certainly cannot accept the argument of the CIT(A) that initial initiation of reassessment proceedings was to examine the acceptability of claim of exemption u/s 10B and the current one is to restrict the exemption. This is because, the AO had the occasion to examine the details filed by the assessee, which were considered not only by the AO but also by the CIT(A), who in the initial proceedings directed the AO to allow the deduction as per law. In the current proceedings also, the revenue authorities examined those vary details to come to a different conclusion. Another major discrepancy noticed during the course of arguments is that there is no mention of authorization of a higher authority to initiate the current reassessment proceedings. Approval of CIT is mandatory. Since there is no mention of the approval sought from the CIT on the reasons, as recorded by the AO to initiate reassessment proceedings, the entire initiation has been vitiated and become bad in law. - Decided in favour of assessee.
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