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2014 (3) TMI 329 - ITAT MUMBAIValidity of revision order - Power of CIT to invoke revision proceedings u/s 263 of the Act – Deduction u/s 80P(2)(c) of the Act - Held that:- The decision in Grasim Industries Ltd. V CIT [2010 (2) TMI 4 - BOMBAY HIGH COURT] followed - Section 263 of the Act empowers the Commissioner to call for and examine the record of any proceedings under the Act - if he considers that any order passed therein, by the Assessing Officer is erroneous in so far as it is prejudicial to the interests of the Revenue, to pass an order upon hearing the assessee and after an enquiry as is necessary, enhancing or modifying the assessment or cancelling the assessment and directing a fresh assessment. As decided in Malabar Industrial Co. Ltd. v. CIT [2000 (2) TMI 10 - SUPREME Court] - the provision “cannot be invoked to correct each and every type of mistake or error committed by the Assessing Officer” and “it is only when an order is erroneous that the section will be attracted” - an incorrect assumption of fact or an incorrect application of law, will satisfy the requirement of the order being erroneous - An order passed in violation of the principles of natural justice or without application of mind, would be an order falling in that category - the assessing officer has given a categorical finding that the assessee is not a cooperative bank – thus, in that case the assessee would be eligible for deduction u/s 80P(2)(c) - the revision order passed by CIT does not fall within the mandate of the provisions of sec. 263 of the Act – the order of the CIT(A) set aside – Decided in favour of Assessee.
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