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2019 (2) TMI 57 - HC - Income TaxRevision u/s 263 - violation of conditions stipulated u/s 10A(2)(ii) and (iii) as assessee's undertaking claiming exemption for the first time under Section 10A for the assessment year 2000-01 - Held that:- As decided in the case of Super Auto Forge Ltd., Vs. Additional Commissioner of Income Tax [2014 (4) TMI 897 - MADRAS HIGH COURT] the assessee was engaged in the business of manufacturing of Auto parts and it has four units. One of the units was registered as Domestic Tariff Area Unit with the Central Excise Authorities during November, 1999. Subsequently, an application was submitted by the assessee therein before the Madras Export Processing Zone (MEPZ) to treat the Domestic Tariff Area unit as 100% Export Oriented Unit. Permission was granted and the Unit came into existence from 31.03.2000 as an Export Oriented Unit. For the assessment year 2001-02, the assessee showed net profit and claimed exemption under Section 10B of the Act, in respect of the 100% Export Oriented Unit. The claim was rejected by the Assessing Officer and the Tribunal. On appeal to this Court, the appeal filed by the assessee was allowed and it was held that the assessee was entitled to the exemption in respect of 100% Export Oriented Unit. - Decided in favour of the assessee and against the Revenue. Revision u/s 263 - Held that:- As decided Principal Commissioner of Income Tax Vs. H.Nagarajain [2018 (6) TMI 105 - KARNATAKA HIGH COURT] the conclusion reached by the Commissioner, while exercising revisional jurisdiction, tantamount to directly interfering with the conclusions reached by the appellate Commissioner and such power of the Revisional authority cannot be conceded to enable him to interfere with the orders passed by the appellate Commissioner, in view of the doctrine of merger and therefore, it was held that the Revisional Authority acted without jurisdiction in passing the said order. We concur with the view taken by the Tribunal in holding that the Revisional Authority has exceeded in jurisdiction in invoking the provisions of Section 263 of the Act when the assessment order with regard to claim of deduction under Section 10A of the Act has merged with the order passed by the CIT(A) dated 25.10.2005. - Decided in favour of assessee.
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