Tribunal overturns Income-tax Commissioner's order, finds assessment not erroneous.

The Tribunal set aside the Commissioner of Income-tax's order u/s.263, finding the assessment order not erroneous and allowed the assessee's appeal. The Tribunal held that the Assessing Officer had considered the relevant provisions, and cited the Malbar Industrial Co. Ltd. case in support of its decision. The order for re-examination of the assessment due to MAT non-consideration was deemed invalid as Section 115JB was found not applicable to the assessee.

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Issues involved: Appeal against order u/s.263 of the Income-tax Act,1961 for Assessment Year 2005-06.

Summary:
The assessee, engaged in manufacturing, appealed against the Commissioner of Income-tax's order u/s.263 for not considering MAT liability. The CIT directed re-examination of the assessment due to MAT non-consideration. The assessee challenged the order on various grounds. The AR argued that all relevant documents were provided, including BIFR application. The AR cited the Malbar Industrial Co. Ltd. case to support that the assessment order was not erroneous. Additionally, the AR pointed out that the CIT agreed that Section 115JB was not applicable to the assessee, making the order invalid. The DR supported the CIT's order. Upon analysis, the Tribunal found the assessment order not erroneous as the Assessing Officer had considered the relevant provisions. Citing the Malbar Industrial Co. Ltd. case, the Tribunal set aside the CIT's order, allowing the assessee's appeal.

Decision:
The Tribunal set aside the CIT's order u/s.263, finding the assessment order not erroneous and allowing the assessee's appeal.

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