2007 (8) TMI 321

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....95. 2. On the basis of the order passed by the Commissioner under section 263 in respect of the assessment year 1996-97, the Assessing Officer did not accept the claim made by the assessee-respondent holding that the Commissioner had held in his order under section 263 that the year 1986-87 was the first year of production. Therefore, deduction under section 80-I of the Act for the assessment year 1994-95 was not available as it was only for a period of 8 years which had expired. However, on further appeal filed by the assessee, it was pointed out that the order passed by the Commissioner under section 263 was subsequently cancelled by the Tribunal in its order dated November 28, 2002, in ITA No. 1592/Delhi/01 both on technical grounds a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....oted in the sale had been set off against the expenditure incurred during the period of test runs and had been transferred to projects and pre-operative expenses. The returned income was declared nil which was accepted by the Assessing Officer. The Tribunal further noted that the finding of the Assessing Officer that the assessment year 1986-87 was not the first year of production had become final. The Tribunal had also noted that the first year of production been 1986-87, the assessee would have been entitled to various expenses which were of the nature of Revenue and there would have been loss of Rs. 40 lakhs to the assessee which would have to be carried forward and set off against income of the subsequent years. This would have gone in ....