TMI Blog2009 (1) TMI 764X X X X Extracts X X X X X X X X Extracts X X X X ..... al to the interest of revenue. Hence, there is no jurisdiction to invoke the provisions of Section 263. The order dated 05.03.2007 is bad in law and the same may be quashed. 2. The ld CIT failed to appreciate that while passing the Assessment Order dated 23.08.2006 the Assessing Officer has already verified the claim of the appellant for deduction under section 80IB of the Act and after due verification has passed the Assessment Order accepting the same. The provisions of 263 are being invoked merely on change of opinion on the basis of facts considered by the Assessing Officer. Thus, there is no jurisdiction to invoke the provisions of Section 263 therefore the order passed under section 263 dated 05.03.2007 is bad in law and the same ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ils regarding the receipts from services and other income were not called for and enquired and since the AO has not applied his mind the CIT held that the order dated 23.08.2006 is erroneous and prejudicial to the interest of Revenue. Consequently, he set aside the order to examine these issues. 3. Objecting to the observation of the CIT, the learned counsel submitted that the AO had enquired about the claim of deduction u/s. 80IB and so the order of CIT falls within the parameters of change of opinion and so the order u/s 263 is not valid. He referred to the principles established by the Hon'ble Supreme Court in the case of Malabar Industrial Co. Ltd. 243 ITR 83. He however, fairly conceded that the issue of receipt from Sales Service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mumbai's recent decision in the case of Smt. Javerben L. Chedda Vs. ITO (ITA No. 1193/Mum/2005, AY 2001-02) In this decision dated 25.01.2007, the tribunal has held as under:- "In the absence of basic and proper enquiries made by the AO the assessment order has been passed without application of mind. Such an order is erroneous. An order passed by the AO without application of mind being erroneous and prejudicial to the interest of revenue and is open to the revision under section 263 of the Act" Thus provisions of Section 263 of the Act have been rightly involved in this case. 3. The deduction u/s 80IB is allowable on profits and gains derived from certain industrial undertakings. In view of the fundamental principles laid down by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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