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2017 (9) TMI 848 - AT - Income TaxRevision u/s 263 - admissibility of deduction claimed u/s 80IC was not properly examined during the course of assessment proceedings - order erroneous and prejudicial to the interest of Revenue - Held that:- In the instant case in the show cause notice issued, the Ld. CIT raised the fact that eligibility of deduction under section 80IC of the Act remain unexamined at the time of assessment. In our opinion, the audit report under section 10CCB and list of industries to be enclosed with license certificate issued by the drug license and controlling authority was necessary for examination of the claim of deduction under section 80IC of the Act and therefore no new issue has been raised by the CIT other than the issues raised in the show cause notice. The arguments of the Ld. counsel are not accepted and the decision relied upon by the Ld. counsel is not applicable over the facts of the instant case. In view of the above discussion, we are of the opinion that not examining the eligibility of deduction under section 80IC of the Act by the AO in the instant case had rendered the order of the AO not only erroneous but also prejudicial to the interest of Revenue, accordingly, CIT had correctly invoked the provisions of Section 263. Accordingly, the grounds of the appeal are dismissed.
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