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2021 (3) TMI 836 - HC - Income TaxRevision u/s 263 - Exemption claimed u/s 80 IB(11- C) - whether the observation made in the order passed by the Tribunal that proper verification and enquiry was made by the Assessing Officer before granting such exemption was correct? - HELD THAT:- As found that the Assessment Officer did make necessary enquiry by issuing questionnaire to the assessee for the assessment year 2012-13 seeking proof of deduction along with the details of deduction as well as exemption claimed by the Assessee. Similar notice under Section 142(1) of the said Act was also replied to by the assessee and it is in that backdrop that the Assessment Officer was pleased to allow the deduction under Section 80 IB (11-C) - Members of the Tribunal thus found that the reason for invoking jurisdiction by the Principal Commissioner of Income Tax u/s 263 of the said Act had no foundation. If certain assessment order was made by the Income Tax Officer the same could not be branded as erroneous by the Principal Commissioner of Income Tax merely because another view was possible. The order of the Income Tax Officer was required to be shown to have been made without any enquiry and not accordance with law. These aspects were missing in the said assessment order. We find that this observation of the Tribunal is correct considering the nature of verification and enquiry made by the Assessment Officer. In the earlier assessment year 2011-12 similar deduction was claimed by the assessee under Section 80 IB (11-C) of the said Act and it was granted by the Assessing Officer. In the decisions relied upon by the learned counsel for the respondent this position has been considered and it was observed that similar deduction having been allowed in the earlier year could not have been denied in the subsequent assessment years. Thus after perusing the material placed on record including the questionnaire, summons under Section 131 of the said Act and notice under Section 142(1) of the said Act, we are satisfied that the Tribunal did not commit any error in holding that such enquiry was made by the Assessing Officer and hence there was no reason for the Principal Commissioner of Income Tax to invoke jurisdiction under Section 263. - Decided in favour of assessee.
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