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2016 (3) TMI 145 - ITAT CHENNAIRevision u/s 263 - reconsider the deduction claimed by the assessee u/s.80-IA - splitting of existing business structure - Held that:- If an assessment order is passed by AO without making requisite enquiries or examining the claim of assessee perse an erroneous order and hence, it is amenable to revisionary jurisdiction u/s.263 of the Act; AO having simply accepted the income declared by the assessee and without any application of mind or enquiry, though the assessee company was not granted with the similar deduction in earlier assessment years, therefore, the CIT can exercise his jurisdiction u/s.263 of the Act. But every loss of Revenue as a consequence of the order of the AO cannot be treated as prejudicial to the interest of the Revenue. If the AO adopted one view of the course permissible in law and it is resulted in loss to the Revenue, where two views are possible and with which CIT does not agree, it cannot be treated as an erroneous order, prejudicial to the interest of the Revenue, unless the view taken by the ITO is unsustainable in law. In the present case as the facts brought on record suggests that the similar claim of assessee u/s.80-IA for assessment year 2009-10 to held that new unit established by the assessee for manufacturing articles used as intermediate products in the old division, which the assessee was buying from the market earlier, is not reconstruction of business already in existence. To constitute reconstruction, there must be transfer of assets of the existing business to the new industrial undertaking. In our opinion, generation of power unit is separate and distinct undertaking for which separate approval was obtained and it cannot be said that splitting of existing business structure. Therefore, in our considered opinion, the lower authorities are not correct in denying the deduction under section 80IA of the Act - Decided in favour of assessee
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