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2021 (5) TMI 445 - AT - Income TaxRevision u/s 263 - Deduction u/s 80IB(10) - as per PCIT housing project in respect of which the assessee firm has claimed deduction u/s 80IB(10) was approved on 03.02.2009, whereas section 80IB(10) allows deduction of profits from such housing project which has to be approved before the 31st day of March 2008 by a local authority, therefore, the claim of deduction u/s 80IB(10) allowed by assessing officer was not found to be correct - HELD THAT:- From the order under section 143(3) of the Act, it is clear that during the original assessment proceedings, the issue relating to deduction under section 80-IB (10) has been discussed and adjudicated by the assessing officer, therefore, after expiry of two years, ld. PCIT should not have exercised his jurisdiction on the issue which has already been discussed and adjudicated in the original assessment proceedings. Thus, ld PCIT has violated the provisions of sub-section 2 of section 263 of the Act. We also note that the said issue, relating to deduction under section 80-IB (10), has already been adjudicated in favour of assessee in AY 2009-10 vide assessment order passed under section 143(3) of the Act dated 27.09.2011 for A.Y. 2009-10, wherein the issue has been discussed in assessment order. PCIT did not revise the order of assessing officer under section 263 of the Act for the assessment year 2009-10. Based on the principle of consistency the claim of the assessee is genuine. The Principle of consistency applies to an order under section 263 of the Act as well, as held in the case of H.P. Cotton Textile Mills Ltd, . [2007 (8) TMI 321 - PUNJAB AND HARYANA HIGH COURT] Assessing Officer has adopted one of the courses permissible in law and even if it has resulted in loss to the revenue, the said decision of the Assessing Officer cannot be treated as erroneous and prejudicial to the interest of the revenue as held by Hon’ble Supreme Court in Malabar Industries Ltd. vs. CIT [2000 (2) TMI 10 - SUPREME COURT]. - Decided in favour of assessee.
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