TaxTMI 
TaxTMI 
2010 (10) TMI 388
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....essment year 2002-03, the assessment was completed on 30-11-2007 under section 143(3) of the Act. In this order, loss from accounting service division of M/s. Ford Business Services Center Pvt. Ltd. was determined at Rs. NIL and under section 115JB book loss was determined at Rs. 98,84,339. This was considered by the ld. CIT as erroneous and prejudicial to the interests of the Revenue. Consequently, a show-cause notice under section 263 of the Act was issued to the assessee. After considering the reply to the show-cause notice, the ld. CIT has revised the assessment order by directing a fresh assessment after setting aside the order dated 30-11-2007. The main ground for revision is that the Assessing Officer, after determining the income fr....
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....dentical to the facts in assessment year 2001-02 where the Hon'ble Income-tax Appellate Tribunal had held in favour of the appellant that the unabsorbed losses could be set off against available profits after availing deduction under section 10B. 6. For that the Commissioner of Income-tax failed to appreciate that the decision in M/s. Intimate Fashions (India) Ltd. [ITA No. 2097/Mds./2006 decided on 27-11-2007] cited by him would not be applicable to the appellant's case since in the case of M/s. Intimate Fashions (India) Ltd., the Hon'ble Income-tax Appellate Tribunal had decided on the allowability of unabsorbed business losses and unabsorbed depreciation against profits of periods subsequent to the relevant assessment years and not du....
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....e CIT to call for and examine the records of any proceeding under the Act. It empowers the CIT to make or cause to be made such an enquiry as he deems necessary in order to find out if any order passed by Assessing Officer is erroneous insofar as it is prejudicial to the interest of the Revenue. The only limitation on his powers is that he must have some material(s) which would enable him to form a prima facie opinion that the order passed by the Officer is erroneous insofar as it is prejudicial to the interest of the Revenue. Once he comes to the above conclusions on the basis of the 'material' that the order of the Assessing Officer is erroneous and also prejudicial to the interests of the Revenue, the CIT is empowered to pass an order as....
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....ed to correct each and every type of mistake or error committed by the Assessing Officer and it is only when an order is erroneous, that the section will be attracted. (iii) An incorrect assumption of facts or an incorrect application of law will suffice for the requirement or order being erroneous. (iv) If the order is passed without application of mind, such order will fall under the category of erroneous order. (v) Every loss of revenue cannot be treated as prejudicial to the interest of the revenue and if the Assessing Officer has adopted one of the courses permissible under law or where two views are possible and the Assessing Officer has taken one view under with which the CIT does not agree, it cannot be treated ....
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....at decision was brought to the notice of the Assessing Officer and he has acted as per law as he was bound to follow the decision of the jurisdictional Tribunal. Therefore, allowing such a set off of loss cannot be said to be erroneous. In the above decision, the Tribunal has held as under : "It is not in dispute that the assessee is eligible for deduction under section 10B. Undoubtedly, section 10B is a part of Chapter III of the Act. It is true that heading of Chapter III is "Incomes which do not form part of total income". However, this caption of Chapter III cannot be conclusive about the exact purport of any provision contained in the said chapter. Earlier, this chapter contained only section 10 which provided for the exclusion of s....