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TMI Blog2010 (10) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... y for the last year of deduction and not for the earlier years of deduction - claim of the assessee allowed - IT Appeal No. 613 (Mad.) of 2010 - - - Dated:- 8-10-2010 - Hari Om Maratha, Abraham P. George, JJ. T. Banusekar for the Appellant. K.B. Rangarajan for the Respondent. ORDER Hari Om Maratha, Judicial Member. This appeal of the assessee, for assessment year 2002-03, is directed against the order of the ld. CIT, Chennai, dated 24-3-2010 passed under section 263 of the Income-tax Act, 1961 (hereinafter referred to as the Act for short). 2. Briefly stated, the facts of the case leading to revision are that for assessment year 2002-03, the assessment was completed on 30-11-2007 under section 143(3) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 263. 3. For that the Commissioner of Income-tax failed to appreciate that the provisions of section 10B(6) are applicable only after the expiry of the relevant assessment years and that since the year under appeal falls within the meaning of relevant assessment year , the provisions of section 10B(6) are not applicable to the appellant s case. 4. For that consequently, the Commissioner of Income-tax erred in applying the provisions of section 10B(6) to the appellant s case. 5. For that the Commissioner of Income-tax failed to appreciate that the facts of the appellant s case for the year under appeal were identical to the facts in assessment year 2001-02 where the Hon ble Income-tax Appellate Tribunal had held in fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITA Nos. 2069 and 2070/Mds./2006 for assessment years 2002-03 and 2003-04, order dated 11-1-2008 wherein contrary view has been taken. 4. We have heard both sides in detail. We have also perused carefully the entire evidences available on record. It is trite that an order can be revised only and only if twin conditions of error in the order and prejudice caused to the Revenue co-exist. 5. The subject of revision under section 263 has been vastly examined and analysed by various Courts including that of Hon ble Apex Court. The revisional power conferred on the CIT vide section 263 is of wide amplitude. It enables the CIT to call for and examine the records of any proceeding under the Act. It empowers the CIT to make or cause to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ideration irrelevant facts. The prejudice that it contemplated under section 263 is the prejudice to the Income-tax administration as a whole. The revision has to be done for the purpose of setting right distortions and prejudices caused to the Revenue in the above context. The fundamental principles which emerge from the several cases regarding the powers of the CIT under section 263 may be summarized below : (i) The CIT must record satisfaction that the order of the Assessing Officer is erroneous and prejudicial to the interests of the revenue. Both the conditions must be fulfilled. (ii) Section 263 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing Officer has made enquiries during the course of assessment proceedings on the relevant issues and the assessee has given detailed explanation be a letter in writing and the Assessing Officer allowed the claim on being satisfied with the explanation of the assessee, the decision of the Assessing Officer cannot be held to be erroneous simply because in his order he does not make an elaborate discussion in that regard. 6. Adverting to the facts of the case, it is found for certain that the Assessing Officer has relied on the decision of the Tribunal (supra) to arrive at his decision. That decision was brought to the notice of the Assessing Officer and he has acted as per law as he was bound to follow the decision of the jurisdictional T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0B and section 10BA. Again, section 10C provides for total exclusion of the income derived by assessee from an industrial undertaking in any Integrated Infrastructure Development Centre or Industrial Growth Centre located in the North-Eastern region. Thus, wherever the Legislature has intended for total exclusion of income it has specifically provided so and wherever it is not intended, the word deduction has been used in those sections. Once when deduction under section 10B has to be allowed, the total income of the undertaking will enter the computation and then only deduction will be given to the assessee. If that is the case, then the stand of the CIT(A) that section 10B is a secluded provision cannot be accepted. Had it been a case w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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