2022 (2) TMI 523

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....ee challenging the revision order passed u/s 263 of the Income-tax Act,1961 ['the Act' for short]. Other appeal relates to the order passed by Ld. CIT(A) against the assessment order passed u/s 143(3) r.w.s. 263 of the Act. 2. We shall first take up the appeal filed by the assessee against the revision order passed u/s 263 of the Act. The assessee is challenging the validity of the revision order. 3. The assessee is engaged in the business of undertaking R&D activity in biotechnology. The assessment in the hands of the assessee was completed u/s 143(3) of the Act on 30.8.2013. The Ld. Principal CIT examined the assessment orders and took the view that the deduction allowed to the assessee by the AO u/s 10B of the Act should no....

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.... issue is still not reached finality as the matter is pending before Hon'ble Supreme Court. It is a well settled proposition of law that all the authorities below the jurisdictional High Court have to necessarily follow the decision rendered by the Hon'ble High Court. Accordingly, the Ld. Principal CIT was not justified in refusing to follow the decision rendered by the jurisdictional High Court. In any case, the decision rendered by Hon'ble Karnataka High Court in the case of Tata Elxsi Ltd. (supra) has since been upheld by Hon'ble Supreme Court in the case of CIT Vs. M/s. Yokogawa India Ltd 391 ITR 274. Hence, the deduction u/s 10B should be allowed without setting off of brought forward losses for the year under consideration. Accordingl....

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....the relief for subsequent assessment years. This ratio was laid down in the context of section 10A and the same, in our view, can be applied to sec.10B also. Accordingly, once there is no change in the facts and circumstances of the case from the earlier years from the initial year when the claim has been accepted, then the deduction cannot be disallowed or denied in the subsequent years of claim. In the instant case, the eligibility of the assessee to claim deduction u/s 10B of the Act would have been examined in the first year, i.e., in AY 2005-06 and the deduction was allowed. The deduction so allowed in assessment year 2005-06 has not been withdrawn. In that case, the PCIT was not justified in directing the AO to deny deduction in the i....