Assessment of Eligibility for Tax Deductions Under Scrutiny: Tribunal Upholds PCIT's Revisionary Powers

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..... ioner of Income Tax (PCIT) for the assessment year 2017-18. The primary issue revolves around the assessment of a deduction under section 80IB of the Income Tax Act, 1961. Factual Background: The assessee, in this case, filed a return of income for the assessment year 2017-18, claiming a deduction under section 80IB(11) of the Income Tax Act. The original assessment was completed, accepting the c .....

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..... nder section 80IB(11) was the focal point. The PCIT noted that the assessee commenced operations outside the period specified in section 80IB(11A), thus disqualifying them from the deduction. * Assessment and Reassessment: The original assessment accepted the deduction claim without scrutinizing the eligibility criteria under section 80IB(11A). The reassessment by the PCIT was based on the pre .....

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..... ision underscores the importance of thorough scrutiny during assessments and the role of section 263 in rectifying oversights that have substantial implications for revenue interests. The case also highlights the nuanced interpretation of tax law provisions, particularly regarding deductions and eligibility criteria. Full Text: 2024 (1) TMI 658 - ITAT RAJKOT
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