Avalon Business Associates v. Pr. Commissioner of Income-tax-14 & Anr
[Citation -2017-LL-1025-4]
| Citation | 2017-LL-1025-4 |
|---|---|
| Appellant Name | Avalon Business Associates |
| Respondent Name | Pr. Commissioner of Income-tax-14 & Anr. |
| Court | HIGH COURT OF DELHI AT NEW DELHI |
| Relevant Act | Income-tax |
| Date of Order | 25/10/2017 |
| Assessment Year | 2011-12 |
| Judgment | View Judgment |
| Keyword Tags | income tax authorities • export oriented unit • development commissioner • power of commissioner |
| Bot Summary: | The assessee is aggrieved by the invocation of power by the Commissioner under Section 263 of the Income Tax Act, 1961. Section 263 was invoked primarily on the ground that the approval did not conform to the CBDT s circular dated 09.03.2009. At the outset, we notice that Enable Exports Ltd. itself took note of the circular of 09.03.2009, which in material particulars records as follows: The matter regarding validity of approvals given by Development Commissioner has been examined in the Board. It has been decided that an approval granted by the Development Commissioner in the case of a hundred percent export oriented unit will be considered valid, once such an approval is ratified by the Board of Approval for EOU scheme. Mr. N.P. Sahni, learned counsel for the assessee/appellant urged that the approval of the Development Commissioner ipso facto was sufficient having regard to the previous binding circulars of the concerned Ministry which were consistently applied by the CBDT in all Income Tax authorities. In particular, he relied upon the delegation of powers for automatic post approval amendments issued by the Department of Electronics. As to whether in fact there was no necessity for a further ratification, in the light of the appellant s contention that a general or a specific circular, which delegated the powers of the Board of Approvals, applied after the issuance of the 09.03.2009 circular, is however kept open for consideration. |