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2018 (6) TMI 503 - AT - Income TaxDoctrine of Merger - Revision order passed by CIT u/s 263 - CIT(A) dismissed the appeal - reopening of assessment order - requirement of set off of losses on notional basis while computing deduction allowable under section 80IB in respect of MBF unit has neither been considered nor set aside by the CIT in revisionary proceedings under section 263 - Held that:- A perusal of the order of CIT passed u/s 263 shows that the ld. CIT by invoking powers conferred on him u/s 263 has set-aside the reassessment order on the limited issue of examination of deduction u/s 80IA/80IB. The entire order has not been set-aside and there is no specific comment by the ld. CIT in his order regarding the validity of the reassessment proceedings initiated by the Assessing Officer u/s 147/148. CIT(A), in our opinion, should not have dismissed the appeal holding the same to be infructuous. He was duty bound and obliged to decide the issue of validity of the reassessment proceedings initiated by the Assessing Officer which was challenged before him. If the assessee succeeds on this legal ground before the ld. CIT(A) then the 263 order passed by the ld. CIT would fail. The arguments by ld. DR, in our opinion, are without any merit and has to be rejected. Since the CIT(A) in the instant case has not decided the validity of the reassessment proceedings challenged before him and had dismissed the appeal as infructuous because of the revisionary powers exercised by the ld. CIT u/s 263, therefore, we deem it proper to restore the issue to the file of the ld. CIT(A) with a direction to decide the legal ground raised before him challenging the validity of the reassessment proceedings. Matter is restored to the file of the ld. CIT(A) with a direction to adjudicate the validity of reassessment proceedings. - Decided in favour of assessee for statistical purposes.
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