Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2007 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2007 (3) TMI 310 - AT - Income TaxJurisdiction Of the CIT u/s 263 - Deduction u/s 80HHC and 80-IB - Erroneous And Prejudicial Order - limited scrutiny by issue of a notice u/s 143(2)(i) - HELD THAT:- It is seen that provisions of s. 80HHC(3) have been amended retrospectively w.e.f. 1st April, 1992 and in the light of the aforesaid amendment the claim of the assessee is in accordance with law. Even otherwise as already held by us, the claim for deduction u/s 80HHC was never the subject-matter of the limited scrutiny assessment and therefore the AO could not have considered the same. The CIT in exercise of the jurisdiction u/s 263 could not therefore hold the order of the AO as erroneous on this ground. It is further seen that the AOs passed the orders of assessments in the case of present assessees on 10th April, 2003, 8th Sept., 2003 and 29th Dec., 2003 respectively. The decision of the Hon'ble Supreme Court in the case of IPCA Laboratory [2004 (3) TMI 9 - SUPREME COURT] was rendered much later in point of time. Prior to the said decision there was a considerable debate, on this issue. As stated, the subsequent statutory amendment with retrospective effect also supports the claim of the assessee. Exercise of jurisdiction u/s 263 on this ground cannot be sustained. In a limited scrutiny the AO could not go into any other claim except claim u/s 80-IB of the Act because that was the only issue which the AO thought fit to investigate in the limited scrutiny assessment. Thus, we are of the view that the exercise of jurisdiction by the CIT u/s 263 was not justified. Orders u/s 263 are therefore quashed and the appeals of the assessee are allowed. In the result, the appeals by the assessee are allowed.
|