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2024 (3) TMI 715 - AT - Income TaxRevision u/s 263 - Basis of the revision proceeding based on the revenue audit objection - PCIT held that the assessee is not eligible to claim benefit u/s. 10AA and there is lack of enquiry by the ld. AO on the points upon which the assessment was reopened - HELD THAT:- Claim was already allowed from the assessment year 2011-12 and the issue based on the survey has already been examined for all the years in the reassessment proceeding from the A.Y. 2010-2011 to 2017-2018. The entire basis of the proceeding u/s. 263 is based on the revenue audit objection. All the issues relevant for scrutiny assessment have been considered by the AO and all relevant enquiries were carried out and there is no fault found the PCIT in other years also and thus it is nothing but a change of opinion when the assessment pursuant to notice u/s. 148 has already been completed and there is no error or fault in the order passed by the assessee and the other issue raised in the reasons recorded for reopening wherein the assessee contented that Rental of plant & machinery and building by M/s Pinkcity Colorstones Pvt. Ltd. was to its DTA Unit, i.e., Mahapura Unit and not to Sitapura SEZ Unit. Even the SEZ Rules do not permit to take Building / Plant & Machinery on rent, without prior permission of the Development Commissioner and no such permission was taken. No statement by any Director or Employee that plant & machinery and building have been given on rent by M/s Pinkcity Colorstones Pvt. Ltd. to Sitapura SEZ Unit. SEZ unit has constructed its own Building and purchased Plant & Machinery. M/s Pinkcity Colorstones Pvt. Ltd. has not sold any plant & machinery to Sitapura SEZ Unit. M/s Pinkcity Colorstones Pvt. Ltd. was not having strong profits but on the contrary was incurring regular losses. Employees of M/s Pinkcity Colorstones Pvt. Ltd. were absorbed by its DTA Unit, i.e., Mahapura Unit and not by Sitapura SEZ Unit. There is no bar that deduction u/s. 10AA will not be permitted if the management of two companies is similar. Items were not transferred from its Mahapura Unit to Sitapura SEZ unit, even otherwise, some raw-materials (gemstones) were sold which were used for manufacturing by SEZ unit, even otherwise there is no bar under the Act in order to claim deduction u/s. 10AA. The assessee already submitted that in the initial years casting machine were not available in Sitapura SEZ unit, hence, casted components were purchased from Pink City Color Stones Pvt Ltd. Thus the proceeding initiated u/s. 263 is merely based on the audit objection and there is no independent view of the ld. PCIT and even on merits when the claim has been accepted by re-opening the case after survey which has been completed there cannot be third inning to the revenue. To drive home to this contention drive strength from the finding of the Hon’ble apex court in case of Parashuram Pottery Works Co. Ltd [1976 (11) TMI 1 - SUPREME COURT] held we have to bear in mind that the policy of law is that there must be a point of finality in all legal proceedings, that stale issues should not be reactivated beyond a particular stage and that lapse of time must induce repose in and set at rest judicial and quasi judicial controversies as it must in other spheres of human activity. Thus we quash the order passed by the PCIT, Central, Jaipur. Decided in favour of assessee.
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