9911796707
TMI Blog2012 (7) TMI 455X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act, 1961 wherein the order under section 263 has been passed based on the change of opinion which is not correct and not justified and bad in law. 2. The Assessing Officer has passed the order under section 143(3) on 26-02- 2010 and the same has been passed after considering the information/documents and data which has been submitted by the assessee and on that basis the order has been considering one view and the same cannot be changed by taking another view hence the order passed under section 263 is not justified and is bad in law. 3. The Assessee has relied upon the case law in respect of Malabar Industrial co. ltd. v cit ( 2000-243 ITR 0083 SC ) 4. The Hon'ble learned CIT -Ill Hyderabad erred while disallowing the exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exchange amounting to Rs. 1,75,17,477/- during the year. Thus there was a difference of Rs. 1,93,47,699/- in the amount stated in the Form 56F and as per the notes to accounts attached to the balance sheet, thus resulted in accepting the excess export turnover and claim of exemption u/s 10A at Rs. 30,74,006/-. 5. In view of the above, the CIT considered that the order passed by the assessing officer under section 143(3) dated 19.12.2008 erroneous and prejudicial to the interest of revenue. 6. The CIT after discussing elaborately in his order, set aside the order and remanded the matter back to the assessing Officer with direction to verify the information referred to above and disallow the deduction u/s 10A after allowing the assessee an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration. He submitted that the assessee has claimed that US branch has loss and because of that it made claim u/s 10B under Indian company operations and also filed copies of FIRCs for Rs. 1,75,17,477. 9. Regarding the business of the assessee, the AR submitted that the Indian company selling the software product/development to outside US entity as per the requirements of the clients on which exemption is being claimed u/s 10A. Further, the US entity is getting the total order for the supply of the software product and out of that some work has been carried out by the Indian company and some value addition was done by US entity of the company and then product is sold to the clients as per requirements. The Indian company is raising the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0A of the I.T. Act. It is only a change of opinion by the CIT. on change of opinion, the CIT cannot assume his jurisdiction under section 263 of the Act. Further, our view is supported by the order of the Tribunal Hyderabad bench in the case of Virinchi Technologies Ltd vs. Income Tax Officer, Ward 3(2), Hyderabad, ITA No. 710/Hyd/2010 wherein held as under: "6. We have considered the rival submissions and perused the material available on record. We find that in the earlier years as well as in the subsequent years to the assessment years under consideration, the department appears to have allowed 10B deduction to the assessee after verifying the all the required details and after getting explanation from the assessee. The CIT assum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellate Authority while adjudicating the ground before him can look into and adjudicate upon finding recorded by the Assessing Officer not only against the assessee which may expressly be the subject matter of appeal but also those which may have gone in favour of the assessee and which may not have been challenged by the assessee. In the present case, the CIT(A) allowed the claim of the assessee vide her order dated 26.2.2010. The CIT(A), on the other hand, could have taken up any other issue relating to allowability of deduction u/s. 10A in his order if he chose to do so. Simply because the Department did not have a right to file an appeal, it cannot be said that the findings against the Revenue are not capable of being challenged or bein ..... X X X X Extracts X X X X X X X X Extracts X X X X
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