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2017 (10) TMI 995 - AT - Income TaxRevision u/s 263 - AO not considered the aspects in the assessments framed u/s 153A - Held that:- We find that there are no incriminating materials found during the course of search for the Asst Years 2008-09, 2010-11 and 2011-12 as the issues addressed by the ld CIT are only interpretation of law and not based on any materials found in the search. With regard to the Asst Year 2009-10, we find from the above explanation of the assessee, there was absolutely no material much less any incriminating material, so as to disturb the earlier concluded assessment for the Asst Year 2009-10. Hence the ld AO had rightly not considered these aspects in the assessments framed u/s 153A of the Act. The assessee had given proper explanations regarding these items before the ld CIT as reproduced above. We find that the assessee had also duly explained the complete contents of the seized documents relied upon by the ld CIT in his order. Thus those materials are not incriminating at all and are forming part of regular books of accounts of the assessee. These explanations have been completely ignored by the ld CIT while directing the ld AO to frame the assessment afresh. We hold that when an addition could not be made as per law in section 153A proceedings, then the said order cannot be construed as erroneous warranting revisionary jurisdiction u/s 263 of the Act by the ld CIT. We hold that even on merits, there is no case made out by the ld CIT for making any addition on the issues proposed in the show cause notice of ld CIT. In these facts and circumstances, we find that the order of the ld CIT u/s 263 of the Act for the Asst Years 2008-09 to 2011-12 deserve to be quashed. - Decided in favour of assessee. Allowance towards additional depreciation u/s 32(1)(iia) of the Act on plant and machinery - Held that:- The assessee is engaged in the manufacturing activity and thereby eligible for deduction u/s 80IB of the Act. Once it is held so, the allowance towards additional depreciation u/s 32(1)(iia) of the Act on plant and machinery is automatic and this was specifically brought to the notice of the ld CIT by the assessee which has been conveniently ignored by the ld CIT while passing the revision order u/s 263 of the Act. In these facts and circumstances, we find that the order of the ld CIT u/s 263 of the Act deserves to be quashed. Accordingly, the grounds raised by the assessee are allowed.- Decided in favour of assessee.
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