2022 (5) TMI 213

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..../2021 2. The assessee has filed the present appeal against the order dated 22.03.2021 passed by the Principal Commissioner of Income Tax, Thane-relevant to the A.Y.2016-17 in which the Principal Commissioner of Income Tax has invoked the revisional power u/s 263 of the I.T. Act, 1961. 3. The assessee has raised the following grounds of appeal: - 1. On the facts and in the circumstances of the case and in law, the learned Principal Commissioner of Income Tax has erred in passing the order u/s 263 of the Income tax Act 1961. 2. The learned Principal Commissioner of Income Tax passed order u/s 263 without granting sufficient time to the appellant to respond to the notice of hearing, thus denying the appellant an opportunity of being hea....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ing total loss to the tune of Rs.10,11,928/- after claiming weighted deduction of Rs.56,15,494/- u/s 35(2AB) of the I. T. Act. The case was selected for scrutiny under CASS. Thereafter, the assessment was completed on 25.12.2018 assessing the total income at Rs.7,65,670/- by making a disallowance of deduction claimed u/s 35(2AB) amounting to Rs.17,77,602/-. 5. On verification of records, it came into notice that the assessee company has not fulfilled all the conditions laid down in the section to claim weighed deduction u/s. 35(2AB). As per CBDT Notification No. 29/2016 dtd. 28/4/2016 amended the I. T. Rule 1962 w.e.f. 1st July, 2016 and form w.r.t. expenditure on scientific Research u/s. 35(2AB) of the Act, Companies incurring expenditure....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ent proceedings u/s 143(3). Since the assessment order passed by the AO is found to be erroneous in so far as it is prejudicial to the interests of the revenue. Notice u/s 263 of the IT Act, 1961 was issued to the assessee on 16.03.2021. In response to the notice u/s 263, the assessee failed to submit any reply to this office till passing of the order. Accordingly, the decision is made on the basis of facts and materials available on records. Considering of all the facts and circumstances, the PCIT set aside the order u/s 143(3) of the Act by virtue of order in question and passed the order in question. Feeling aggrieved, the assessee has filed the present appeal before us. 8. We have heard the argument advanced by the Ld. Representative o....