TMI Blog2006 (4) TMI 511X X X X Extracts X X X X X X X X Extracts X X X X ..... r. In our view, this argument is not acceptable. As mentioned, all the relevant details were already available before the Assessing Officer when the assessment was made. It has been held in the case of Gabriel India Ltd.[ 1993 (4) TMI 55 - BOMBAY HIGH COURT] that if all the relevant details have been filed by the assessee and the Assessing Officer allows the claim, the decision of the Assessing Officer cannot be held to be erroneous simply because in his order he does not make any elaborate discussion in that regard. Thus, we hold that the ld. CIT has wrongly invoked his jurisdiction u/s 263 of the IT Act. We, therefore, quash his impugned order passed u/s 263 of the Act. In the result, the assessee s appeal stands allowed. - K.C. SINGHAL, JUDICIAL MEMBER AND K.K. BOLIYA, MEMBER (A) For the Appellant : Rajan Vora For the Respondent : R.K. Rai ORDER K.K. BOLIYA, ACCOUNTANT MEMBER 1. This appeal has been filed by the assessee against the order dated 21-2-2005 passed under section 263 of the IT Act by the CIT-XXIV, Mumbai. The relevant facts are that the return of income was filed by the assessee on 31-10-2000 declaring total income of Rs. 83,73,656. The return was accompanied by au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT in his notice are concerned, the CIT accepted the assessee's explanation. With regard to ground No. (iii), the ld. CIT has not mentioned anything in his order regarding the duty drawback and he held that only with regard to profits derived from sale of DEPB and special import licences, the Assessing Officer erred in allowing deduction under section 80HHC. The operative part of the CIT's order is reproduced below from para 4 of the order: Submission of the ld. AR has been carefully considered. Profit derived from sale of DEPB and also from Special Import Licences are incidental income and, therefore, cannot be treated as export profit. Sub-section (3) of section 80HHC has defined 'export profit' for the purpose of sub-section (1) of section 80HHC. The CBDT has also clarified that any incidental income rising out of sale of DEPB etc. are not eligible for deduction under the section. So export profit for the purpose of this section is to be determined according to the clauses (a), (b) and (c) of sub-section (3) of section 80HHC and excluding profit not rising out of export. Since the amount of deduction available under the section was wrongly computed and allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion under section 80HHC is available with regard to the income from DEPB, duty drawback etc. The ld. counsel invited our attention to the reply filed by the assessee before the CIT and submitted that such Tribunal's decisions were also brought to the notice of the ld. CIT. In the reply, a reference has been made to the ITAT, Delhi Bench decision in the case of Dy. CIT v. Metro Tyres Ltd. [2001] 79 ITD 557 and Hyderabad Bench decision in the case of A.P. Industrial Components Ltd. v. Dy. CIT [2002] 124 Taxman 76 (Mag.). The ld. counsel argued that the Assessing Officer had taken a view which was legally correct at that point of time and merely because the ld. CIT did not agree with the view adopted by the Assessing Officer, he cannot substitute his own view in place of the view adopted by the Assessing Officer. It is contended that if on any given issue, there are two plausible views and the Assessing Officer has adopted one view with which the ld. CIT does not agree, the CIT cannot invoke his jurisdiction under section 263. The ld. counsel strongly relied on the Supreme Court decision in the case of Malabar Industrial Co. Ltd. v. CIT [2000] 243 ITR 83. The ld. counsel also rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw. 6. We have given a careful consideration to the rival submissions and have gone through the relevant facts in the light of the judgments cited before us by both the sides. Insofar as the factual position is concerned, there is no dispute. Along with the return of income, the assessee had furnished complete details regarding deduction under section 80HHC claimed by it. These details include copies of final accounts of the assessee along with auditor's report and the Form No. 10CCAC. All these details were available before the Assessing Officer when the assessment was completed under section 143(3) by him, and the claim of the assessee with regard to DEPB, special import licence and duty drawback was allowed. It is true that with regard to this particular aspect, there is no discussion in the Assessing Officer's order. However, the normal practice is that whenever any claim of the assessee is accepted, the Assessing Officer may not give any discussion in his order and the discussion is confined only to disallowance made by him. It is also true that at the point of time when the Assessing Officer made the assessment, the legal position as emerging from various orders of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be treated as an erroneous order, unless the view taken by the Assessing Officer is unsustainable under law. (vi) If while making the assessment, the Assessing Officer examines the accounts, makes enquiries, applies his mind to the facts and circumstances of the case and determines the income, the Commissioner, while exercising his power under section 263 is not permitted to substitute his estimate of income in place of the income estimated by the Assessing Officer. (vii) The Assessing Officer exercises quasi-judicial power vested in him and if he exercises such power in accordance with law and arrives at a conclusion, such conclusion cannot be termed to be erroneous simply because the Commissioner does not feel satisfied with the conclusion. (viii) The CIT, before exercising his jurisdiction under section 263, must have material on record to arrive at a satisfaction. (ix) If the Assessing Officer has made enquiries during the course of assessment proceedings on the relevant issues and the assessee has given detailed explanation by a letter in writing and the Assessing Officer allows the claim on being satisfied with the explanation of the assessee, the decision of the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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