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2019 (3) TMI 10 - AT - Income TaxRevision u/s 263 - lack of inquiry - non filing and verification of statutory Form - Examination of eligibility of deduction u/s 10AAA - HELD THAT:- A bare reading of the order of the Pr.CIT shows that the AO has failed to make inquiry into the relevant aspects concerning eligibility towards deduction u/s 10AA. The prescribed form required for the purposes of claim of deduction u/s 10AA was not available before the AO. AO did not make any inquiry in this regard. The form ultimately filed before the Pr.CIT was also found with reference to Section 10A in place of Section 10AA. The approval of the SEZ authority was also not placed before the AO nor asked for. The order of the AO u/s 143(3) clearly suffers from lack of inquiry and application of mind. AO has clearly failed to discharge its quasi-judicial functions while framing the assessment order. Such an assessment order is thus clearly erroneous and prejudicial to the interest of the Revenue. The reply received by the AO from SEZ authority in response to Section 133(6) was towards its competence to implement EOU Scheme and issue of letter of permission of STP Scheme in place of its issuance by BOA (Board of Approval). The reply was made to explain the delegation of powers to the Directors of STP Schemes and ratification of such approvals by the competent authority. The inquiry was made on only one limited aspect of the matter loosing sight of the other crucial aspects as noticed by the Pr.CIT. Thus, the usurpation of the jurisdiction u/s 263 and conclusion of the Pr.CIT that the assessment order passed is erroneous and prejudicial to the interest of the Revenue cannot be faulted. Certain documents furnished at a later stage after completion of the assessment, the correctness of which has not been tested, cannot be seen as sufficient compliance of deduction provision. - Decided against assessee.
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