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M/S. The Malabar Industrial Co. Ltd vs Commissioner Of Income-Tax, Kerala ... on 10 February, 2000

8. On the other hand, the DR vehemently argued and supported the order of the CIT. He submitted that it is abundantly clear from the language of section 80IB(14)(g) that as on the last day of the previous year the assessee should be a small scale industrial undertaking. Therefore, the Assessing Officer has to examine and see that the investment in the plant and machinery of the assessee was not more than ` 3 crores. As the investment in plant and machinery of the assessee as on the last day of the previous year ended on 31.3.2006 exceed the prescribed limit of ` 3 crores, the CIT was fully :- 9 -: I.T.A.No. 79/2011 justified in invoking his power u/s 263 of the Act and directing the Assessing Officer to examine the allowance of deduction u/s 80IB to the assessee. He further argued and submitted that as will be observed from the assessment order that there is no whisper by the Assessing Officer regarding the examining of the allowance of deduction u/s 80IB of the Act to the assessee and therefore, the CIT was fully justified in passing an order u/s 263 of the Act and directing the Assessing Officer to examine the same. He relied on the decision of the Hon'ble Supreme Court in the case of Malabar Industrial Co. Ltd vs CIT , [2000] 243 ITR 83(S.C) wherein it was held as under:
Supreme Court of India Cites 12 - Cited by 2080 - S S Quadri - Full Document

Commissioner Of Income-Tax vs Paul Brothers on 16 October, 1992

"6. We have considered the submissions. We find that the submissions made by Mr. Pardiwalla on the basis of the decision of this Court in the matter of Paul Brothers (supra) and Director of Information Pvt. Ltd. (supra) merits acceptance. Therefore, in this case, it is not necessary for us to decide whether SEEPZ unit was set up/formed by splitting up of the first unit. In both the above decisions, this Court has held that where a benefit of deduction is available for a particular number of years on satisfaction of certain conditions under the provisions of the Income Tax Act, then unless relief granted for the first assessment year in which the claim was made and accepted is withdrawn or set aside, the Income Tax officer cannot withdraw the relief for subsequent years. More particularly so, when the revenue has not even suggested that there was any change in the facts warranting a different view for subsequent years. In this case for the assessment years 2000-01 and 2001-02 the relief granted under Section 10A of the Act to SEEPZ unit has not been withdrawn. There is no change in the facts which were in existence during the assessment year 2000-01 vis a vis the claim to exemption under section 10A of the Act. Therefore, it is not open to the department to deny the benefit of Section 10A for subsequent assessment years i. e. assessment years 2002-03 and 2003-04 and 2004-05. Besides that, on consideration of the facts involved both the Commissioner of Income Tax (Appeals) and the Tribunal have recorded a finding of fact that the SEEPZ unit is not formed by splitting up of the first unit."
Bombay High Court Cites 11 - Cited by 79 - Full Document

Commissioner Of Income Tax vs Sohana Woollen Mills on 22 September, 2006

23. Lastly, the assessee relied upon the decision of the Hon'ble P&H High Court in the case of CIT vs Sohana Woollen Mills (supra) wherein it was held that mere audit objection, and merely because a different view can be taken are not enough to hold that the order of the Assessing Officer is erroneous or prejudicial to the interest of the Revenue. Thus, the Hon'ble High Court held that if two views are possible then merely to take a different view, the provisions of section 263 cannot be invoked by the CIT.
Punjab-Haryana High Court Cites 10 - Cited by 77 - Full Document
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