Small scale industrial undertaking under Section 80-I supported prima facie absence of jurisdiction for revision notice.

Section 80-I's reference to a small scale industrial undertaking was read with the Explanation linked to section 80HHA and the definition in section 11B of the Industries (Development and Regulation) Act, 1951. On the materials placed, the Industries Department certificate showing permanent registration as a small scale industrial undertaking supported the assessee's case that the section 263 notice lacked jurisdiction prima facie. Section 80-I(5) also required consideration in that context. Ad interim relief was continued.

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Issues: Whether the notice issued under section 263 of the Income-tax Act, 1961 was prima facie without jurisdiction on the ground that the assessee's unit qualified as a small scale industrial undertaking for the purpose of section 80-I of the Income-tax Act, 1961.

Analysis: The controversy turned on the statutory meaning of a small scale industrial undertaking under section 80-I, read with the Explanation referring to section 80HHA and the definition linked to section 11B of the Industries (Development and Regulation) Act, 1951. On the materials placed, the certificate issued by the Department of Industries indicated permanent registration of the unit as a small scale industrial undertaking within the meaning of section 11B. In that light, the notice under section 263 appeared prima facie to be without jurisdiction, and the effect of section 80-I(5) also required consideration.

Conclusion: The notice was held to be prima facie without jurisdiction, and ad interim relief was continued.

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