Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (4) TMI 1102 - AT - Income TaxRevision u/s 263 - computation of book profit the assessee had incorrectly reduced deduction u/s. 80IB(10) - claim of the assessee was accepted by the AO without applying the provisions of section 115JB correctly - Held that:- Principles of primary estoppel will not have any role to play when MAT provisions are to be applied. The assessee can claim its due deduction. But in the name of liberal interpretation or legitimate expectation deduction u/s. 80IB(10) cannot be brought within the fold of the section 115JB. It is a non obstante clause and provisions of section 80IB(10) cannot dilute the rigor encompassing it. As the AO had not given full effect to the provisions of section 115JB so his order would fall in the category of erroneous order. Computation made by him was not as per clear mandate of the law. The assessee itself had in the subsequent two years followed the method as suggested by the CIT in her revisionary order. No reasonable cause was brought on record for not claiming any deduction u/s. 80IB (10) while computing the income under the MAT provisions for the immediate succeeding two AY's. We do not find that there was any change in the provisions of both the sections for the year under appeal and for the subsequent two AY's. Thus there existed the first pre- condition for invoking the provisions of section 263 of the Act as the view taken by the AO was unsustainable in law. The AO had not applied his mind before allowing the deduction to the assessee. We are of the opinion that the CIT was able to demonstrate that the view taken by the AO was not plausible rather it was legally unsustainable and incorrect. Besides it resulted in loss of revenue. Thus both the prerequisites were there when the CIT issued the notice u/s. 263 of the Act. She had decided the issue after considering the available material and legal position prevailing at that point of time. So we hold that the order passed by the CIT does not suffer from any legal or factual infirmity. - Decided against assessee
|