TaxTMI 
TaxTMI 
2013 (5) TMI 584
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....me- tax Act in their respective hands for the assessment years mentioned in the cause title against their respective names. Since all assessees are challenging the validity of revision orders passed in their respective hands and since it was submitted that the Learned CIT(A) has passed the impugned revision orders on identical set of facts, they were heard together and are being disposed of by this common order, for the sake of convenience. 2. At the time of hearing, the Learned Counsel for the assessees submitted that all these appeals arise out of common set of facts and hence the facts brought to the notice of the bench in the case of Hyma Milkline Pvt. Limited in ITA No.223/Viz/2012 and the arguments advanced in that case can be appl....
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.... company has admitted the income for the asst. years 2003-04 at Rs.1,80,380/- after claiming deduction u/s 80IB. The assessee company, in fact, is not entitled to claim the deduction as the assessee is not engaged in manufacture or production of articles or things while it is only engaged in processing of milk. That is why, the Notice u/s 148 was issued for reopening of assessment for the asst. year 2003-04." 4. The Learned. Counsel submitted that the assessing officer has reopened the assessments only for the purpose of examining the eligibility of the assessee to claim deduction u/s 80IB of the Act. The Learned Counsel submitted that a small scale industrial undertaking operating cold storage plant is eligible for deduction under secti....
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....d storage plant would be eligible for deduction u/s 80IB." Though the dispute urged before the Tribunal in the case of Sumaraj Seafoods Pvt. Ltd. (Supra) was with regard to computation of deduction u/s 80 IB of the Act, yet the Tribunal, while examining the issue, have given a clear finding that the activity of storage of its own goods for sale is also eligible for deduction u/s 80IB of the Act. After considering the explanations of the assessee as well the decision of the Mumbai bench of the Tribunal, the assessing officer accepted the fact that the assessee herein is eligible for deduction u/s 80IB of the Act and accordingly allowed the claim made by the assessee. Accordingly, the Learned A.R. submitted that the assessing officer has a....
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.... business activity, where as the statute requires that the activity of operation of cold storage should be a distinct and independent unit. The assessing officer has failed to consider this important point while considering the claim of the assessee and hence the impugned assessment orders are rendered erroneous and prejudicial to the interests of the revenue. 6. We have heard the rival contentions and also perused the record. Before proceeding further, we feel it pertinent to discuss on the legal position relating to the revision proceedings carried out under section 263 of the Act. The Hon'ble Bombay High Court, in the case of Grasim Industries Ltd. V CIT (321 ITR 92) has discussed about the scope of provisions of section 263 as under:....
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....hat is prejudicial to the interest of the Revenue is explained in the judgment of the Supreme Court (head note) : "The phrase 'prejudicial to the interests of the Revenue' has to be read in conjunction with an erroneous order passed by the Assessing Officer. Every loss of revenue as a consequence of an order of the Assessing Officer, cannot be treated as prejudicial to the interests of the Revenue, for example, when an Income- tax Officer adopted one of the courses permissible in law and it has resulted in loss of revenue, or where two views are possible and the Income-tax Officer has taken one view with which the Commissioner does not agree, it cannot be treated as an erroneous order prejudicial to the interests of the Revenue unless th....