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Commissioner Of Income Tax, Bangalore vs Infosys Technologies Ltd on 4 January, 2008

12. While adjudicating the scope of section 263 of the Act, the Hon'ble jurisdictional High Court in the case of CIT v. Infosys Technologies Ltd. [2012] 17 taxmann.com 203 (Kar.), Their Lordships have held that the submission of the assessee could not be accepted that the materials had been placed before the assessing authority and therefore there should be a conclusion that the authority has applied his mind to the same and there was no question of the Commissioner interfering by taking a different view. Their Lordships have held that assessing authority performs a quasi-judicial function and the reasons for his conclusion and findings should be forthcoming in the assessment order. Though it is urged by the assessee ITA No.1182/Bang/2013 Page 11 of 14 that reasons should be spelt out only in a situation where the assessing authority passes an order against the assessee or adverse to the interest of the assessee and there is no need for the assessing authority to spell out reasons when the order is accepting the claim of the assessee, to accept a submission of this nature would be to give a free hand to the assessing authority just to pass order without reasoning and to spell out reasons only in a situation where the finding is to be against the assessee or any claim put forth by the assessee is denied. Their Lordships further held that there cannot be any dichotomy of this nature as every conclusion and finding by the assessing authority should be supported by reasons, however, brief it may be, as in a situation where it is only a question of computation in accordance with relevant articles of a Double Taxation Avoidance Agreements, it should be clearly indicated in the order of the assessing authority, whether or not the assessee had given particulars or details of it. It is the duty of the assessing authority to do that and if the assessing authority had failed in that, more so in extending a tax relief to the assessee, the order definitely constitutes an order not merely erroneous but also prejudicial to the interest of the revenue and, therefore the Commissioner was justified in exercising the jurisdiction under section 263 of the Act.
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