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TMI Blog2012 (7) TMI 576X X X X Extracts X X X X X X X X Extracts X X X X ..... he other in Trident SEZ, Chennai. Income from the Chennai unit is exempt under section 10A of the Income-tax Act, 1961 ("the Act", for short). 4. For the assessment year 2005-06, the respondent-assessee filed a returned income of Rs. 1,41,70,404. The Assessing Officer passed an assessment order dated December 24, 2007, and assessed the income at Rs. 1,47,72,170. He accepted the profit earned from the SEZ unit at Chennai computed and declared by the assessee as Rs. 1,58,08,510. The said profit was held to be exempt under section 10A of the Act. An addition of Rs. 6,01,765 was made in respect of profits from the unit at Gurgaon by disallowing some expenses. 5. The Commissioner of Income-tax ("the Commissioner", for short) issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eas there is no such debit in the profit and loss account of the SEZ unit. This issue has neither been examined during the assessment proceedings nor is there an indication to that effect in the assessment order. Considering the fact that invoices of both the non-SEZ and SEZ units were in the same name of Trident Buying House and export of goods had also been made to common parties, this appears a little abnormal that commission will be charged only in respect of the sales from the non- SEZ unit. The assessee has given a detailed reply on this point. This reply has been considered. Also, the point has been discussed in details with the representative of the assessee. Considering the fact that the sale prices of the product at the non-SEZ un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 7. By the impugned order dated November 4, 2010, passed in I. T. A. No. 1245/Del/2010, the Income-tax Appellate Tribunal ("the Tribunal", for short) has quashed and set aside the order passed by the Commissioner under section 263 of the Act on the ground that the assessee during the course of the original assessment proceedings before the Assessing Officer had submitted copies of the orders, details of commission paid, purchase details, etc. The Tribunal held that the Assessing Officer had conducted adequate enquiries during the course of the assessment proceedings and had accordingly rightly allowed the commission claimed of Rs. 3.33 crores, which was debited in the profit and loss account relating to the Gurgaon unit. 8. The query rai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iries. The finding of the Commissioner is clear and lucid. Failure to conduct the said enquiries, makes the assessment order erroneous and prejudicial to the interests of the Revenue. The Commissioner rightly exercised his revisionary power under section 263 of the Act. The required conditions for exercise of the said power are satisfied. We may also note that the Commissioner in his notice under section 263 had referred to six issues but had ultimately exercised power under section 263 in respect of only one issue, i.e., commission of Rs. 3.33 crores. 11. In view of the aforesaid findings, the question of law is answered in negative, in favour of the Revenue and against the respondent-assessee. Accordingly, the appeal is allowed. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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