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2016 (4) TMI 570 - AT - Income TaxMAT computation - Excess deduction u/s 80HHC without setting off losses incurred by the assessee on export of trading goods - revision u/s 263 - Held that:- Computing MAT liability under the provisions of sec.115JB, deduction u/s 80HHC shall be allowed after setting off losses suffered on export of trading goods. Therefore, there was no issue on the point of allowing deduction at 100% instead of 30% while computing MAT liability u/s 115JB. There is no quarrel as far as the judgment of Hon’ble Supreme Court in the case of Ajanta Pharma Ltd (2010 (9) TMI 8 - SUPREME COURT) that deduction u/s 80HHC has to be allowed on the full amount of export profits instead of on the reduced rate of 30% in the case of the assessee. We find that the assessee itself has computed deduction u/s 80HHC even on the book profit without applying the decision of the Hon’ble Supreme Court in the case of Ajanta Pharma Ltd (2010 (9) TMI 8 - SUPREME COURT ). When the revision proceedings /s 263 were initiated only on the point of setting off of loss suffered in export of trading goods while computing deduction us 80HHC, then the claim of the assessee that while computing MAT liability of the assessee u/s 115JB deduction u/s 80HHC shall be allowed on the full amount instead of 30% of the profit derived from export of goods cannot be taken into consideration because the revision proceedings u/s 263 of the Act cannot be used for the benefit of the assessee but it is only meant for revision of the assessment order if the same is found erroneous and prejudicial to the interest of revenue. Thus the pre-requisite conditions for invoking provisions of section 263 are the order of the AO is erroneous and prejudicial to the interest of the revenue, and therefore these proceedings cannot be used for the benefit of the assessee. Even if the assessee has committed a mistake in filing return, remedy available with the assessee is under other relevant provisions of the Act and not u/s 263. We do not find any merit or substance in the appeal of the assessee. Consequently, we uphold the impugned order revision order of the CIT. - Decided against assessee.
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