COMMISSIONER OF INCOME TAX Vs. PVP VENTURES LIMITED

JUDGEMENT

(1.) THE Revenue is on appeal as against the order passed by Income Tax Appellate Tribunal relating to the assessment year 2000-01. Following are the questions of law raised for consideration:-

(2.) THE assessee is engaged in the business of computer training and software development. While completing the assessment, the Assesssing Officer treated the receipts on account of exchange fluctuation as a capital receipt and the same was reduced from the profits and gains while working out the relief under Section 80HHE. Apart from this, the Assessing Officer also allowed the Staff Welfare expenditure incurred in terms of accounting policies prescribed in SEBI guidelines. While allowing the shares to the employees, the difference in the value was credited to the account of the company to be allowed as an expenditure.

(3.) AS far as the revision proceedings were concerned, the assessee objected to the invoking of jurisdiction under Section 263 of the Income Tax Act by contending that while passing of the assessment order, the Assessing Authority examined the details filed by the assessee and arrived at the conclusion. Hence, there was nothing to hold the assessment as erroneous or prejudicial to the interest of the Revenue. The Commissioner of Income Tax however held that Income Tax Officer had passed the order without application of mind and the assessement was made in a casual manner, and crucial issues were not looked int. In the circumstances, he justified the invoking of the jurisdiction under Section 263 of the Income Tax Act.