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2015 (3) TMI 611 - AT - Income TaxRevision u/s 263 - CIT had observed that, firstly, the Tribunal has not accepted the computation of deduction u/s 80-I on the profits of CPP and has mainly directed to allow the deduction u/s 80- IA in accordance with law - Held that:- In the original assessment order, the AO did not allow the claim of deduction u/s 80-IA in respect of the CPP unit. Finally, the said deduction has been allowed by the Tribunal following the earlier year order of the Tribunal in assessee’s own case. How the computation of profit of CPP has to be worked out, has been discussed by him in detail. In our opinion, such an observation and the finding of the CIT is not tenable in law and on facts, because the assessee’s claim for deduction u/s 80-I on CPP has been specifically allowed by the Tribunal and secondly, the ratio and method of determination of profit of CPP unit has already been decided in the earlier years and it was also not a subject matter of dispute or difference by the department. Thus, the issue of claim of deduction u/s 80-I including the determination of ratio of CPP stands merged with the order of the Tribunal. The AO has mainly followed the direction of the Tribunal and allowed the deduction as per the profit determined. Such a variation of deduction u/s 80- I, now cannot be disturbed by examining the claim of deduction of expenses denovo as held by him. The ratio of asset of gross block of fixed assets has been worked out in the manner, which has been determined and upheld in the earlier years. The same now cannot be disturbed on an entirely different footing specially when the AO has simply carried out the computation to allow the deduction u/s 80-I as per the order of the Tribunal. Such an observation of the CIT with regard to the adjustment of expenses is neither borne out from the original assessment order nor from the first appellate order. If at all, some mistake has occurred on the ratio of determination of profit, then the same would relate to the original assessment order dated 30.11.2000 and not in the second order. Such an order, now cannot be revised u/s 263, as it is clearly barred by limitation. - Decided in favour of assessee.
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