COMMISSIONER OF INCOME-TAX Vs. MAX INDIA LTD

JUDGEMENT

(1.) THIS appeal is directed against the order of the Income -tax Appellate Tribunal, Amritsar Bench, Amritsar (for; short, 'the Tribunal'), dated August 1, 2003, allowing the appeal of the assessee against the order passed by the Commissioner under Section 263 of the Income -tax Act, 1961 (for short, 'the Act').

(2.) THE assessee company is engaged in the business of manufacturing of drug intermediaries, electronic chemicals and formulations. It filed its return of income for the assessment year 1992 -93 on December 29, 1992. Since the turnover of the assessee for the assessment year 1992 -93 included exports, it had claimed deduction under Section 80HHC of the Act at Rs. 1,33,09,439. The assessment was completed by the Assessing Officer on March 15, 1995, and deduction under Section 80HHC of the Act was allowed as claimed by the assessee. However, on a perusal of the record, the Commissioner of Income -tax observed that while working out the deduction under Section 80HHC there was a negative figure of profit at one stage which had been ignored by the Assessing Officer and thereby excess deduction under Section 80HHC had been allowed. Accordingly, vide order dated March 5, 1997, he held that the order passed by the Assessing Officer was erroneous: inasmuch as it was prejudicial to the interests of the Revenue and consequently he set aside the assessment framed by the Assessing Officer under Section 143(3) dated March 15, 1995, and directed him to recompute the deduction under Section 80HHC of the Act.

(3.) MR . R. P. Sawhney, learned senior standing counsel for the Revenue, contended that when the assessment was framed by the Assessing Officer, there was no order of the Tribunal available to him. Thus, accordingly on the basis of the subsequent decisions of the Tribunal, it could not be said that the view taken by the Assessing Officer was a possible view.