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2020 (11) TMI 102 - HC - Income TaxRevision u/s 263 - Assessee's claim for deduction u/s 10B - whether AO actually applies his mind to the information that may be supplied by the Assessee? - distinction between merely calling for information on a particular issue and considering such information with due application of mind - HELD THAT:- It is not possible to say that the CIT, in this case, acted under dictation from any extraneous authority. It is true that the CIT, in this case, in invoking revision jurisdiction, made reference to the SFIO report. However, that does not mean that the CIT acted under dictation. Any subsequent and allegedly changed SFIO report would not dent the exercise of jurisdiction by the CIT under Section 263 of the IT Act. AR urged that the as Assessee was indeed involved in manufacture and, therefore, was entitled to deduction under Section 10B but according to us, it was for the AO to examine the matter by due application of mind and, thereafter, decide afresh whether the Assessee was indeed entitled to deduction under Section 10B of the IT Act. The decision of the AO to allow such deduction to the Assessee without making any inquiries whatsoever or rather without addressing the issue in his order, rendered his order quite erroneous and prejudicial to the interests of the Revenue. At this stage, therefore, it will not be appropriate for us to examine the issue as to whether the Assessee indeed fulfilled the requirements of Section 10B of the IT Act during the relevant assessment year. It is for the Appellate Authority to go into the issue of eligibility of the Assessee for deduction under Section 10B of the IT Act during the relevant assessment year. Therefore, it will not be appropriate for us, at this stage and in these proceedings to go into such issues, now that we have held that there was no error in exercise of revision jurisdiction by the CIT for the relevant assessment year. - Decided against assessee.
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