TMI Blog2013 (1) TMI 1047X X X X Extracts X X X X X X X X Extracts X X X X ..... has filed one more appeal in ITA No.137/Coch/2012 challenging the revision order passed by the Administrative Commissioner u/s 263 of the Act. All these appeals were heard together and hence they are being disposed of by this common order, for the sake of convenience. 2. We shall take up the appeals filed by both the parties against the order of Ld. CIT(A). The assessee is challenging the decision of Ld CIT(A) on the following issues:- (a) Deduction of replantation expenses under Rule 7A. (b) Addition pertaining to income from sale of field latex. (c) Determination of WDV of assets for the purpose of computing depreciation. 3. The revenue is in appeal before us on the following issues:- (a) Deduction of replantat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the income in proportion to the quantity manufactured out of purchased latex to the total quantity manufactured and accordingly determined the income from sale of purchased latex at Rs.5,78,489/-. The Ld. CIT(A) also confirmed the order of the AO on this issue. 6. Before us, the Ld. A.R contended that the assessee has furnished a working showing the income derived from sale of centrifuged latex produced out of the purchased field latex. He submitted that the said workings have been made by adopting the items of expenditure booked in the regular books of account. He submitted that the AO did not examine the said workings and simply rejected the same by holding that the assessee did not maintain separate books of accounts. 7. On the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the law. 9. The next issue in the appeal of the assessee relates to the determination of WDV of assets for the purpose of computation of depreciation. During the course of hearing, the assessee submitted that the impugned issue has been decided in favour of the assessee by the Hon ble Supreme Court in the case of CIT Vs. Doom Dooma India Ltd (2009)(310 ITR 392). In view of the said decision of Apex Court, in our opinion, this issue required fresh examination at the end of the AO. Accordingly, we set aside the order of Ld CIT(A) on this issue and restore the matter to the file of the AO with the direction to examine this issue afresh by duly considering the decision of Hon ble Supreme court, referred supra. 10. The only remaining iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cting it to 35% by applying Rule 7A. Accordingly, he set the assessment order and directed the AO to rework the loss arising from Rubber sheeting factory. Aggrieved, the assessee is in appeal before us. 13. The contention of the Ld. A.R before us was that the AO has duly considered this aspect, while the Ld. D.R submitted that the AO did not examine this issue during the course of assessment proceeding. 14. We feel it pertinent to refer to the decision rendered by the Hon'ble Bombay High Court in the case of Grasim Industries Ltd. V CIT (321 ITR 92), wherein the court has discussed about the scope of provisions of section 263 as under: Section 263 of the Income-tax Act, 1961 empowers the Commissioner to call for and examine th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt (head note) : The phrase prejudicial to the interests of the Revenue has to be read in conjunction with an erroneous order passed by the Assessing Officer. Every loss of revenue as a consequence of an order of the Assessing Officer, cannot be treated as prejudicial to the interests of the Revenue, for example, when an Income-tax Officer adopted one of the courses permissible in law and it has resulted in loss of revenue, or where two views are possible and the Income-tax Officer has taken one view with which the Commissioner does not agree, it cannot be treated as an erroneous order prejudicial to the interests of the Revenue unless the view taken by the Income-tax Officer is unsustainable in law. The principle which has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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