TMI Blog2010 (8) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 - 481 OF 2009 - - - Dated:- 19-8-2010 - MR. A.K. SIKRI MS. REVA KHETRAPAL JJ. Appellant Through: Mr. Pankaj Jain, Advocate with Mr. Abhajay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer has incorrectly allowed deduction under Chapter VI-A without restricting these deductions to the extent of profits gains of business. Deductions were allowed inclusive of income from other sources capital gains, which is not admissible as per the scheme of the Act. In this case the gross total income of the assessee includes income from business of ₹ 30,43,83,783/-, long term capital gains of ₹ 6,90,88,457/- and income from other sources of ₹ 90,73,141/-. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er had revised the order, would show that the Commissioner was of the opinion that the Assessing Officer had incorrectly allowed the deduction in Chapter VI-A of the Act without restricting these deductions to the extent of profits gains of business. Deductions were allowed inclusive of income from other sources and even the capital gains, which according to the Commissioner were not admissible as per Section 43A of the Act. To this extent, the Tribunal has concurred with the Commissioner as it is clear from the following discussion contained in the order of the Tribunal:- 13. As regards the other issue relating to the claim of the assessee for deduction U/s 80IA, 80HHC and 80-O in respect of capital gain and other income, we are, ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l to the interest of the revenue, the Tribunal still modified the directions given by the Commissioner. The Tribunal was of the opinion that the CIT should have directed the Assessing Officer to carry out such exercise instead of directing him to disallow the claim of the assessee for deductions in respect of other income straight away. Thus modifying the orders of the Commissioner, the Tribunal has remitted the matter back to the Assessing Officer to consider the issue relating to the claim of the assessee for deduction under Section 80IA, 80HHC and 80-O of the Act in respect of other income after dong such exercise. 6. Learned Counsel for the appellant has argued that the view taken by the Assessing Officer was one of the plausible vie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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