TaxTMI 
TaxTMI 
2017 (10) TMI 1395
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....for a fresh determination of income and proper examination of facts and law. 3. The learned PCIT failed to appreciate that the learned A.O. had allowed the claim of deduction u/s. 80IB (11C) after verifying all the conditions for the eligibility of the claim of deduction made by the appellant company and hence, there was no question of setting aside the asst. order on the ground that the deduction was allowed by the learned A.O. without making proper enquiries. 4. The learned PCIT erred in initiating the proceedings u/s 263 merely on the doubt that the order passed by the AO appears to be without bringing on record sufficient material and details of proper verification thereof and that the order passed by the AO appears erroneous and prejudicial to the interest of the revenue within the meaning of Sec. 263 of the Act. 5. The learned PCIT failed to appreciate that the Appellant Company has complied with all the relevant conditions to be eligible for deduction u/s 80IB(11C) which are also reproduced by the PCIT in the notice issued u/s. 263 initiating the proceedings and all the issues were also verified by the learned A.O. and hence, there was no reason to hold that the asst. ....
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.... had started operations within stipulated period i.e. first day of April, 2008 and ending on the 31st day of March, 2013. The assessee pointed out that it had capacity of 102 beds for the patients on first day of July, 2009, hence the condition was fulfilled. The construction of hospital was in accordance with Regulations, Byelaws of the local authority and it had also received completion certificate from CEO of Ratnagiri Nagar Parishad, copy of which was filed. The assessee also referred to the Auditor‟s report for claiming the aforesaid deduction. The Assessing Officer vide para 9 notes that he had considered the submissions of assessee regarding its claim of deduction and had also verified the compliance of all the conditions as submitted by the assessee, as required as per the provisions of section 80IB(11C) of the Act. He further holds that he was satisfied that the assessee had complied with all the conditions stipulated in the section and the assessee was entitled to claim the deduction under the said section. Accordingly, the claim of assessee in this regard, was allowed. 5. The Commissioner on the other hand, on verification of records noted that the Assessing Offic....
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....ualifies u/s 80IB(1) for claiming deduction u/s 80IB(11C) has not been done by the Assessing Officer and the case was not examined from the purview of section 80IB(2). The learned Authorized Representative for the assessee during the course of proceedings under section 263 of the Act admitted that the Assessing Officer had not raised any queries in this regard but had examined in depth whether the conditions mentioned in section 80IB(11C) of the Act were satisfied or not. The Commissioner after taking into consideration the various judicial precedents was of the view that where the Assessing Officer has taken a view without making requisite enquiries or examining the claim of assessee would perse be an erroneous view and would be amenable to revisionary jurisdiction under section 263 of the Act. Further, the CIT(A) held that taking one view where two or more views are possible also, necessarily merits the requirement of analyzing the facts in the light of applicable law. He was of the view that proper examination of facts in the light of relevant law was necessary in order to say that the Assessing Officer had adopted permissible course of law or taken a view where two or more view....
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....y the Commissioner; on the other hand, points raised by the Commissioner in his revisionary order had no relevance. He further referred to the Balance Sheet and the note thereunder which is placed at page 8 of the Paper Book, wherein the factum of land ownership was clarified. He further referred to the reply filed before the Assessing Officer which is placed at page 70 of the Paper Book and pointed out that the fact that the land was taken from the Director was not only notified in the Balance Sheet but also to the Assessing Officer. He also referred to page 48 of the Paper Book, which enlists the additions to the fixed assets which was filed along with Balance Sheet and audited Profit and Loss Account. He stressed that relevant conditions of section 80IB(11C) of the Act were verified by the Assessing Officer. 8. The learned Departmental Representative for the Revenue on the other hand, pointed out that no copy of sanction layout plan was filed. Further, it was the duty of the Assessing Officer to verify that the conditions have been fulfilled in respect of conditions of having 100 beds. The learned Departmental Representative for the Revenue pointed out that the documentary evid....
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....he company in its name and the completion certificate in respect of building was also filed. The assessee has in the Balance Sheet itself pointed out that the land on which the said hospital was being run was in the name of Director of the assessee company. Further, the assessee has referred to the fixed assets and pointed out that it was 100 bedded hospital. One of the conditions of section 80IB(11C) of the Act is that in order to be eligible for claiming the deduction, hospital should be 100 bedded. The Commissioner on verification of records was of the view that the Assessing Officer had not verified that the conditions have been fulfilled by the assessee in order to be eligible to claim the deduction. Show cause notice in this regard was issued to the assessee. The assessee explained its case and reply was filed before the Commissioner. 11. The Commissioner while exercising the jurisdiction under section 263 of the Act, referred to the provisions of section 80IB(1) and (2) of the Act and was of the view that the conditions laid down in the said sub-sections need to be fulfilled in order to claim the deduction under section 80IB(11C) of the Act. The perusal of said sub-section ....
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....) of the Act itself. Sub-section (11C) reads as under:- "80IB: ....... '(11C) The amount of deduction in the case of an undertaking deriving profits from the business of operating and maintaining a hospital located anywhere in India, other than the excluded area, shall be hundred per cent of the profits and gains derived from such business for a period of five consecutive assessment years, beginning with the initial assessment year, if- (i) the hospital is constructed and has started or starts functioning at any time during the period beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2013; (ii) the hospital has at least one hundred beds for patients; (iii) the construction of the hospital is in accordance with the regulations or bye-laws of the local authority; and (iv) the assessee furnishes along with the return of income, a report of audit in such form and containing such particulars, as may be prescribed, and duly signed and verified by an accountant, as defined in the Explanation to sub-section (2) of section 288, certifying that the deduction has been correctly claimed. Explanation. - For the purposes of this sub-section,- (a) a hosp....