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2014 (7) TMI 180 - ITAT HYDERABADJurisdiction of the CIT in invoking powers u/s 263 of the Act – Held that:- The CIT has considered the assessment order passed u/s 143 of the Act to be erroneous and prejudicial to the interests of the revenue for non-consideration of certain issues as raised in the show cause notice issued u/s 263 of the Act - the assessee has not only explained queries raised by the AO, but, has also substantiated it with necessary documentary evidence - the AO have conducted necessary enquiry and completed the assessment after applying his mind to the facts and materials on record, assessment order passed cannot be considered to be erroneous and prejudicial to the interests of the revenue as the condition precedent for invoking jurisdiction u/s 263 is not satisfied – Relying upon Malabar Industrial Co. Ltd. Versus Commissioner of Income-Tax [2000 (2) TMI 10 - SUPREME Court] - the assessment order passed cannot be considered to be erroneous and prejudicial to the interests of the revenue for subjecting it to revisional proceeding u/s 263 of the Act. Grant of deduction u/s 80IA of the Act - Gain derived from sale of carbon remission reduction certificates – Part of business income or not – Held that:- The amount received on sale of CERCs being capital in nature – Following The Commissioner of Income Tax – IV, Hyderabad Versus M/s. My Home Power Ltd. [2014 (6) TMI 82 - ANDHRA PRADESH HIGH COURT] - it cannot be treated as income of the assessee in the first place - the assessee has treated it as revenue receipt, receipt being in the nature of capital cannot be treated as income - even if AO has allowed the deduction on the amount u/s 80IA treating it as revenue income, no prejudice was caused to the revenue - one of the condition for invoking jurisdiction u/s 263 was not satisfied. Claim of reimbursement of taxes from AP TRANSCO – Computation of book profit u/s 115JB of the Act – Held that:- The Tribunal in the case of the same assessee has directed the AO to delete the addition - it cannot also be considered for the purpose of computing book profit of the assessee u/s 115JB of the Act as it does not accrue as income of the assessee for the assessment year - the AO taking note of the order passed by the Tribunal on the issue has added the income on protective basis only - since the amount was not treated as income in the books of account the same also cannot be considered under the provisions of section 115JB, which is to be computed based on P&L A/c of the assessee company. Only because the view taken by the AO does not appear to be correct to the CIT, it cannot be said that such view is erroneous and prejudicial to the interests of the revenue - though the CIT has observed that the view taken by the AO is not correct, but, he himself has not expressed in detail why he considers it to be incorrect - on going through the provision contained u/s 43A and relying upon CIT Vs. Woodward Governor India P. Ltd. [2009 (4) TMI 4 - SUPREME COURT] – the view taken by the AO is not one of the possible view - the CIT was not justified in treating the assessment order to be erroneous and prejudicial to the interests of revenue – Decided in favour of Assessee.
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