Case Law Details
M/s. Cairn India Ltd. Vs. Director of Income Tax (Madras High Court)
Question No. 1 :
13.1. Our answer to question No.1 is that, while, there was, clearly, a variance between what is stated in the SCN, and that, which was noted in the order of DIT, that by itself would not render the order passed under Section 263 of the 1961 Act illegal, as long as at the stage of hearing, the Assessee was given due opportunity to rebut the concerns and/or the material that the DIT had in his possession, based on which, he had reached the conclusion that the assessment order was erroneous and prejudicial to the interest of the Revenue. Therefore, this question is answered in favour of the Revenue and against the Assessee.
Question No. 2 :
13.2. Our answer to question No. 2 is similar to our answer to question No. 1, which is that, though no SCN was issued with regard to the admissibility of the deduction claimed by the Assessee under Section 80IB(9), opportunity, in that behalf, ought to have been given by the DIT at the stage of conducting the hearing and prior to passing an order under Section 263 of the 1961 Act. Accordingly, question No. 2 is also answered in favour of the Revenue, and against the Assessee.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
