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2014 (6) TMI 769 - ITAT AHMEDABADRevision u/s 263 of the Act – Computation for deduction u/s 80HHC and 80IA of the Act – Held that:- Following COMMISSIONER OF INCOME-TAX Versus MAX INDIA LTD. [2007 (11) TMI 12 - Supreme Court of India] - deduction u/s.80HHC has to be computed after reducing the deduction allowed u/s.80IB/80IA - the assessment was originally completed u/s. 143(3) of the Act on 28.10.2005 wherein the assessee was allowed deduction u/s. 80IB at Rs 32,77,522/- and section 80HHC at Rs 53,82,417/-. While allowing deduction u/s. 80HHC, the Assessing Officer has not reduced the amount which was allowed as deduction u/s. 80IA from the ‘profits and gains of business or profession’ - the AO initiated proceedings u/s 147 of the Act and the assessee objected against the initiation of reassessment proceedings and submitted that deduction u/s 80IB and 80HHC allowed in the original assessment. The assessment was originally completed u/s 143(3) of the Act, the assessee was allowed deduction u/s. 80IB and section 80HHC - the CIT was not justified in setting aside the order and directing for investigating the facts afresh without pointing out any specific fact which required further investigation - the CIT could not point out how the view adopted by the Assessing Officer was not a possible view the order of the CIT were contrary decisions of the High Court - It is an established position of law that when two views were possible in respect of an issue and the Assessing Officer has adopted one of the possible views, such an order of the Assessing Officer cannot be deemed as erroneous as well as prejudicial to the interest of the Revenue – thus, the order of the CIT is set aside – Decided in favour of Assessee.
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