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2008 (2) TMI 471 - AT - Income TaxRevision u/s 263 - Erroneous and Prejudicial Order Passed by AO - No assessment order was passed u/s 143(3) - two views possible on the date when the CIT passed his order under section 263 - HELD THAT:- The Assessing Officer has not discussed the issue of deduction of the relief allowed under section 80-IA while computing the eligible profit for the purpose of deduction under section 80HHC. In those circumstances, we may not be able to say whether the Assessing Officer had expressed any opinion at all. It is also not possible to say that the Assessing Officer had taken one of the possible views. The matter would have been entirely different in case the Assessing Officer has discussed expressly in the assessment order and concluded that there was no need for deducting the profit allowed under section 80-IA while computing deduction under section 80HHC. Unfortunately, in the case before us, the Assessing Officer has not discussed anything. Therefore, it clearly shows non-application of mind on the part of the Assessing Officer. The Apex Court in the case of Asstt. CIT v. Rajesh Jhaveri Stock Brokers (P.) Ltd. [2007 (5) TMI 197 - SUPREME COURT] after considering the provisions of section 143(1)(a), found that when the return was processed under section 143(1) of the Income-tax Act, it cannot be said that the Assessing Officer has taken any view on the claim made by the assessee. Therefore, it is very clear that when the Assessing Officer has not applied his mind and made proper enquiry with regard to the claim of the assessee, the order of the Assessing Officer is erroneous and prejudicial to the interests of the revenue. In those circumstances, we may not be able to say that the Assessing Officer has taken one of the views permissible under law. Thus, we do not find any infirmity in the order of the lower authority. In the result, the appeal of the assessee stands dismissed.
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