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TMI Blog2016 (12) TMI 1492X X X X Extracts X X X X X X X X Extracts X X X X ..... IT is justified in invoking the revisionary jurisdiction u/s 263 of the Act in the facts and circumstances of the case. 3. The brief facts of this issue are that the assessee is a public limited company engaged in the business of manufacturing /trading of guar gum and wind power generation. The assessee is having 100% Export Oriented Unit (EOU) at Viramgam and had claimed deduction u/s 10B of the Act in the sum of Rs. 5,12,79,987/- in the return of income which was originally processed u/s 143(1) of the Act later in the assessment proceedings u/s 143(3) of the Act, the ld. AO after thoroughly examining the claim of deduction u/.s 10B of the Act accepted the eligibility of claim of deduction u/s 10B of the Act and finally made disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r computing the business profits in accordance with the provisions of the Act, the amount eligible for deduction u/s 10B of the Act was worked out at Rs. 5,12,79,987/- which was also certified by the Chartered Accountant in Form No.56G for the same amount. The assessee accordingly claimed deduction u/s 10B of the Act only to the extent of Rs. 5,12,79,987/- which was accepted by the ld. AO u/s 143(1) of the Act initially and later u/s 143(3) of the Act by making disallowance on some other account to the tune of Rs. 86,85,103/-. Hence it was pointed out that no error had occurred in the order of the ld. AO warranting the initiation of assessment proceedins u/s 263 of the Act. The ld. CIT however, proceeded to set aside the assessment de novo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... total income, independent profit and loss account of 100% EOU, independent Income tax depreciation statement of 100% EOU, computation of deduction u/s 10B of the Act, Form No.56G issued by the Chartered Accountant together with the workings and consolidated financial statements together with the annual report for the year ended 31.03.2010 and also filed a complete reconciliation of the computation of the business in columnar form stating that even assuming the contentions of the ld. CIT are to be taken as correct, even then the business income still remains at Rs. 16,46,29,552/- vide page 18 of the paper book. Based on these documents relied upon by him he argued that there was absolutely no error in the computation of deduction u/s 10B of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 143(1) of the Act wherein the ld. AO had granted deduction u/s 10B of the Act for an amount of Rs. 5,12,79,987/-. Later on in the scrutiny proceedings u/s 143(3) of the Act the ld. AO while examining the claim of deduction u/s 10B of the Act went through the entire workings of the assessee and found that the assessee is not entitled for deduction u/s 10B of the Act in respect of certain receipts to the tune of Rs. 86,85,103/- which according to him are not attributable to 100% EOU and accordingly made disallowance u/s 10B of the Act thereon to that extent. While completing the assessment u/s 143(3) of the Act, the ld. AO started the computation of the total income from the "assessed income u/s 143(1) of the Act - Rs. 16,46,29,551/-" and la ..... X X X X Extracts X X X X X X X X Extracts X X X X
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