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2015 (4) TMI 46 - AT - Income TaxRevision u/s 263 - not provided for the interest and remuneration to the partners though authorized in the partnership deed thus had earned more profits than the reasonable profit and this attracts provisions of section 80IA(10) r.w.s. 10B(7) - whether the issue sought to be raised in order passed u/s 263 of the Act was not on the basis of material thrown up by search u/s 132 of the Act and cannot be subject matter of addition while framing assessment u/s.153A ? - Held that:- Commissioner has not restored the issue for examination to the file of the AO but held that the interest and remuneration was to be taken into account for the purpose of the calculation of the business income eligible for the deduction u/s.10B of IT Act. This is not a case where learned Commissioner wanted a relook the issue by the Revenue Department but directed in absolute terms to recompute the claim hence in the interest of justice, we hereby hold that such an order of the learned Commissioner was not sustainable in the eyes of law. We have already held that the impugned orders of the AO were not an erroneous order because ultimately the calculation of the claim of deduction u/s.10B should be made on the basis of the case laws as discussed in the case, therefore, there was no ultimate gain to the Revenue Department. Such an order of the AO cannot be termed as prejudicial to the interest of the Revenue. While granting the deduction u/s.10B it was not a situation that an incorrect application of law was applied by the AO. We therefore conclude that the revisionary order passed u/s.263 of the learned Commissioner was not sustainable in the eyes of law; hence quashed. - Decided in favour of assessee.
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