https://www.taxtmi.com/caselaws?id=465246 ITAT Delhi upheld the revisionary order u/s 263, holding that the assessment order granting deduction u/s 36(1)(viii) was both erroneous and prejudicial to the interest of the Revenue. The AO wrongly computed the deduction on a wider business income base instead of restricting it to net income derived from the specified long-term finance business, contrary to the post-amendment statutory language. ITAT held that each assessment year must conform to the law applicable for that year, and prior assessments or AO's past practice do not cure a legal error. Consequently, the CIT's assumption of jurisdiction u/s 263 was valid and the assessee's appeal was dismissed. en-us Wed, 13 Apr 2011 00:00:00 +0530 Fri, 12 Dec 2025 16:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465246 ITAT Delhi upheld the revisionary order u/s 263, holding that the assessment order granting deduction u/s 36(1)(viii) was both erroneous and prejudicial to the interest of the Revenue. The AO wrongly computed the deduction on a wider business income base instead of restricting it to net income derived from the specified long-term finance business, contrary to the post-amendment statutory language. ITAT held that each assessment year must conform to the law applicable for that year, and prior assessments or AO's past practice do not cure a legal error. Consequently, the CIT's assumption of jurisdiction u/s 263 was valid and the assessee's appeal was dismissed. Case-Laws Income Tax Wed, 13 Apr 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465246