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2010 (8) TMI 85 - HC - Income TaxErroneous Decision - Revision u/s 263 - The return was processed under Section 143 (1) (a) of the Act and the assessment was completed under Section 143 (3) of the Act on 27th March, 2002 at an amount of ₹ 3,96,46,565/- under the normal provisions and at ₹ 5,56,85,482/- as per the provisions of Section 115JA of the Act. - CIT expressed a prima facie opinion that the order of assessment was erroneous and prejudicial to the interest of the revenue and revised u/s 263 - CIT revised the order on the basis of (i) discloser in Form 3CD - (ii) It is seen that income from long term capital gains and income from other sources was also adjusted against Chapter VI-A deductions relating to Section 80-IA, 80HHC and 80-O, which were to be restricted to the extent of profits and gains of business - (iii) AO omitted to disallow depreciation on the additions made to plant & machinery on account of loss due to fluctuation - Held that: - When we find that the twin conditions for exercise of the power under Section 263 of the Act were satisfied viz.(i) the order of the Assessing Officer was erroneous, and (ii) it was prejudicial to the interest to the revenue as well, the exercise of power by the Commissioner under Section 263 of the Act cannot be faulted with
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