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2016 (1) TMI 1032 - ITAT BANGALORERevision u/s 263 - claim of allowance under the provisions of sec. 40(a)(ia) was not examined by the AO during the course of assessment proceedings - Held that:- The assessee could not demonstrate before us that the issue was examined by the AO during the course of assessment proceedings. It is settled principle of law that non-enquiry by the AO on an issue confers jurisdiction on the CIT to revise the assessment. The Hon’ble jurisdictional High Court, in the case of CIT vs. Infosys Technologies Ltd.(2012 (1) TMI 76 - KARNATAKA HIGH COURT) following the judgment of Malabar Industrial Co. vs. CIT (2000 (2) TMI 10 - SUPREME Court), held that where deduction was allowed by the AO without indicating the basis, that could be considered as an order both erroneous and prejudicial to interests of revenue. When the ld.CIT remanded the matter to the AO to examine the issue afresh, it cannot be termed as beyond the jurisdiction of the CIT. Respectfully following the judgment of the Hon'ble jurisdictional High Court in the case of Infosys Technologies Ltd.(supra), we hold that the ld.CIT(LTU) was justified in assuming jurisdiction u/s 263 of the Act and directing for de novo assessment. - Decided against assessee
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