CIT Vs. PUROLATOR INDIA LTD

JUDGEMENT

(1.) SANJIV KHANNA,J: (ORAL) The present appeal filed by the Revenue under Section 260A of the Income Tax Act, 1961 (the Act) relates to assessment year 2000 -01 and is directed against the order of the Income Tax Appellate Tribunal (tribunal, for short) dated 13th May, 2010 in the case of Purolator India Ltd. now known as Mahle Filter System (India) Ltd. (respondent -assessee).

(2.) BY the impugned order the tribunal has set aside the reassessment order on the ground that the jurisdictional pre -conditions for initiation of proceedings were not satisfied. Reassessment proceedings had been initiated by the Assessing Officer after recording that the computation of deduction under Section 80HHC was allowed without reducing the deduction claimed and allowed under Section 80IB as required by Section 80IA(9), which is also applicable to Section 80IB.

(3.) THE Assessing Officer in the original assessment proceedings had specifically examined the deduction claimed under Section 80HHC, as a question/issue had arisen whether the said deduction as claimed by the assessee was as per the said Section. The assessee had claimed deduction under Section 80HHC at Rs.94,13,277/ -. The same was reduced by the Assessing Officer by Rs.18,35,706/ - and restricted to Rs.75,77,571/ -. The original return of income was accompanied by audited accounts and auditors report. The copy of the auditor report was required to be submitted in terms of Section 80HHC(4) of the Act. Similarly, the assessee had claimed deduction under Section 80IB of the Act, which was specifically mentioned in the audited accounts and the auditors report.