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2015 (6) TMI 606 - AT - Income TaxRevision u/s 263 - CIT(A) cancelled the registration granted to the assessee u/s 12A - Held that:- AO granted relief u/s. 11 to 13 of the Act to the assessee in ITNS 150 because registration u/s. 12AA was restored in favour of the assessee by the Tribunal and the capital expenditure and benefit u/s. 11 were allowed to the assessee. These deductions are allowable when the registration is effective in favour of the assessee and have also been granted originally in favour of the assessee. Therefore, the AO is bound to follow the decision of superior authorities. Merely because the AO has followed the order of superior authorities, would not give rise to occasion to treat ITNS 150 as erroneous and prejudicial to the interest of Revenue. The order u/s. 263 thus could not be sustained. The ld. Counsel for the assessee also relied upon the decision of the Supreme Court in the case of S.RM.M.CT.M Tiruppani Trust vs. CIT, [1998 (2) TMI 3 - SUPREME Court], in which it was held that capital expenses to be allowed as deduction. Thus we are of the view that the AO has correctly gave appeal effect in favour of the assessee u/s. 11 to 13 because the assessee got registration u/s. 12AA of the IT Act as per directions of the Tribunal. Therefore, there is no error in ITNS 150 to be revised u/s. 263 of the IT Act. Thus, the ld.CIT has acted without jurisdiction in the matter. We accordingly set aside the impugned order u/s. 263 for all the assessment years under appeals and quash the same. - Decided in favour of assessee.
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