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2015 (12) TMI 463 - AT - Income TaxRevision u/s 263 - whether the activity undertaken by the assessee comes within the scope and meaning of words “manufacture and production of article or thing" as used by the legislation in section 10B(2)(i) of the Act? - Held that:- Assessing Officer, in his reassessment order dated 20.2.13 passed in pursuance to the directions of Hon'ble High Court, allowed deduction us/ 10B of the Act to the assessee by holding that the activities undertaken by the assessee would amount to manufacture within the meaning of section 10B(2)(i) of the Act in the context of aforesaid proceedings undertaken by the Assessing Officer during reassessment proceedings carried out in pursuance to the order of Hon'ble High Court, we appreciate that the Assessing Officer followed directions of Hon'ble High Court in its letter and spirit and properly and deeply verified and examined the claim of the assessee on the basis of additional evidence as well as spot inspection and inquiry report of the departmental Inspector and then concluded that the activities undertaken by the assessee would amount to manufacture within the meaning of section 10(B)(2)(i) of the Act on the basis of said conclusion, the assessee’s claim for deduction u/s 10B of the Act was allowed. we observe that the Assessing Officer adopted a reasonable, correct and plausible view based on logical analysis of documentary evidence of the assessee and fortified by the Inspector’s spot and physical inspection report and the same cannot be held as unsustainable or not in accordance with the provisions of the Act. The Assessing Officer rightly held that the assessee is undertaking manufacturing activities and thus it is entitled for deduction/exemption u/s 10B of the Act. In our humble understanding, this is not a case of two possible views but the present case is the case of one acceptable and sustainable view and in this situation, it cannot be held that the CIT assumed valid jurisdiction to issue notice and to pass revisional order u/s 263 of the Act. Hence, we are inclined to hold that the CIT has no valid reason to assume jurisdiction to invoke section 263 - Decided in favour of assessee.
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