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2016 (12) TMI 1492 - AT - Income TaxRevision u/s 263 - error in the claim of deduction u/s 10B - Held that:- We find from the perusal of the said contents of the paper book, that there is absolutely no error in the claim of deduction u/s 10B of the Act made by the ld AO and for the sake of clarity, we would like to state that the assessee had claimed deduction u/s 10B of the Act only to the extent of ₹ 5,12,79,987/- in the return of income which was also duly supported by a Chartered Accountant certified in Form No.56G to that extent. This return was initially processed u/s 143(1) of the Act wherein the ld. AO had granted deduction u/s 10B of the Act for an amount of ₹ 5,12,79,987/-. Later on in the scrutiny proceedings u/s 143(3) AO while examining the claim of deduction u/s 10B went through the entire workings of the assessee and found that the assessee is not entitled for deduction u/s 10B of the Act in respect of certain receipts to the tune of ₹ 86,85,103/- which according to him are not attributable to 100% EOU and accordingly made disallowance u/s 10B of the Act thereon to that extent. While completing the assessment u/s 143(3) of the Act, the ld. AO started the computation of the total income from the “assessed income u/s 143(1) of the Act – ₹ 16,46,29,551/-“ and later on proceeded to make regular disallowances in the assessment to that income. Hence it is very clear that the AO had granted deduction only to the extent of ₹ 5,12,79,987/- u/s 10B of the Act. Hence, we are thoroughly convinced that there is no error in the order of the ld. AO warranting revisionary proceedings u/s 263 - Decided in favour of assessee
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