Tax exemption under incentive scheme cannot be curtailed unilaterally by assessing authority beyond jurisdiction.

An assessing authority cannot unilaterally reduce tax exemption already granted by the competent screening committee under an incentive scheme. The Tax Board and appellate authority held that the revenue could not sit in judgment over the exemption order and curtail the benefit on its own, and the High Court agreed that the assessing authority had exceeded its jurisdiction. The concurrent finding of lack of jurisdiction was upheld in favour of the assessee, and the revision petitions were not entertained because no substantial question of law arose.

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Issues: Whether the assessing authority could reduce the exemption from tax liability earlier granted by the District Level Screening Committee and whether interference was warranted with the concurrent findings of the appellate authority and Tax Board.

Analysis: The exemption had been granted to the assessee under the incentive scheme, and the Tax Board found that the assessing authority could not sit in judgment over that grant and curtail the benefit on its own. The Board relied on the settled principle that a revenue authority cannot override a competent exemption order issued under the incentive framework. The High Court found that both the appellate authority and the Tax Board had taken the same view and that the assessing authority had exceeded its jurisdiction in reducing the exemption.

Conclusion: The reduction of exemption by the assessing authority was not permissible, and the finding of lack of jurisdiction was upheld in favour of the assessee.

Final Conclusion: No substantial question of law arose, and the revision petitions were not entertained.

Ratio Decidendi: A taxing authority cannot unilaterally curtail an exemption already granted by the competent screening authority under the incentive scheme, and such action is beyond jurisdiction.

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