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TMI Blog2014 (1) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... the reducing balance after deduction under Section 80HHC - The Commissioner acted within his jurisdiction under Section 263 of the Income Tax Act, 1961 to revise the order - Following Joint Commissioner of Income Tax v. Mandideep Eng. & Pkg. Ind. (P) Ltd. [2006 (4) TMI 75 - SUPREME Court] - The Ao shall allow deduction under section 80HHC and 80IA while keeping in view of the restrictions of Section 80IA (9) of the Act - The issue was restored for fresh adjudication. X X X X Extracts X X X X X X X X Extracts X X X X ..... that in the circumstances powers under Section 263 could not be invoked by the Commissioner, and that the view taken by the Assessing Officer was sustainable in law, since he had taken one of the two course permissible in law. Relying upon CIT v. Max India Limited, (2007) 295 ITR 282 (SC) the Tribunal held that where two views are possible, powers under Section 263 could not be invoked, as in such case the order could not be treated to be prejudicial to the interest of the revenue. The Commissioner of Income Tax-II, Kanpur has filed this appeal on a question of law as follows:- "Whether on the facts and in the circumstances of the case, the Hon'ble Income Tax Appellate Tribunal was correct in holding that the Commissioner of Income-tax ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under any other provisions of this Chapter under the head C-deductions in respect of certain incomes and shall in no case exceed the profits and gains of such eligible business of undertaking or enterprises, as the case may be." We find substance in the contention of Shri Shambhu Chopra, appearing for the revenue that though Section 80HHC and 80IA are independent of each other, the deductions to the extent of such profits and gains shall in no case exceed the profits and gains of such eligible business of undertaking or enterprises, as the case may be and thus it was not open to the A.O. to allow deduction to the extent of 100% of the profits and gains of the eligible business. Shri Ashish Bansal has placed reliance upon CIT, Delhi-IV v. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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