2010 (8) TMI 85

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....d ultimately the assessment was completed under Section 143 (3) of the Act on 27th March, 2002 at an amount of Rs. 3,96,46,565/- under the normal provisions and at Rs. 5,56,85,482/- as per the provisions of Section 115JA of the Act. Sometime thereafter, the Commissioner of Income Tax issued notice on 30th January, 2004 under Section 263 (1) of the Act. As per this notice, the Commissioner expressed a prima facie opinion that the order of assessment dated 27th March, 2002 passed by the Assessing Officer was erroneous and prejudicial to the interest of the revenue on the following counts:- "I. Expenditure of Rs. 3,99,23,750/- was allowed as a deduction on account of "Strategic Management Consultancy Fees". Annexure-II of 3CD report enclose....

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....tent of Rs. 181.31 lacs." 2. After the reply of the assessee was received and he was given hearing, the Commissioner passed orders dated 9th March, 2004.   3. In so far as the ground no.III as extracted above and stated in the notice is concerned, the explanation of the assessee was accepted by the Commissioner himself. On other two grounds, the Commissioner revised the order of the Assessing Officer and directed him to pass the assessment order accordingly. Against this order, the assessee went in appeal before the Income Tax Appellate Tribunal (ITAT). The ITAT has partly allowed this appeal of the assessee vide its impugned order dated 31st October, 2008. Further, the explanation of the assessee on ground no. I was also accepte....

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....e interest of the Revenue in the order of the AO allowing the deductions claimed by the assessee u/s 80IA, 80HHC and 80-O in respect of the said capital gain The ld. CIT thus was thus fully justified in correcting the said error by revising the order of assessment on this issue by directing the AO not to allow deduction to the assessee under the said provisions in respect of capital gain.   14. ............... In our opinion, the ld. CIT however should have directed the AO to carry out such exercise instead of directing him to disallow the claim of the assessee for deductions in respect of the income straight away. In that view of the matter, we modify the impugned order of the ld. CIT and direct the AO to consider the issue relatin....