- (1.) The subject matter of challenge in this appeal preferred by the Revenue is a judgement and order dated 13th April, 2011 by which the learned Tribunal allowed the assessee's appeal setting aside the order dated 1st March, 2010 passed by the Commissioner of Income Tax in exercise of power under Section 263 of the Income Tax Act (hereinafter referred to as 'the Act').
(2.) It is a fact that the assessment under Section 143(3) of the Act for the assessment year 2006-07 was completed on 28th March, 2008 without any discussion whatsoever. The return filed by the assessee was accepted in toto. Proceedings thereafter under Section 154 of the Act were started by a notice dated 8th May, 2008. The particulars of mistakes, appearing from the notice, proposed to be rectified were as follows: " a) Amount received from BDF (Rs.18 Crores) as Compensation is taxable under the head "other source of income". b) Excess deduction allowed u/s.80IB amounting to Rs.1,24,45,885/-. c) Excess debit of Royalty Rs.46,61,828/-. d) Excess allowance of Royalty paid by Rs.24,77,129/-. e) Excess debit on account of consumption of Raw Materials by Rs.1,56,59,363/-."
(3.) The proceedings under Section 154 were, however, dropped by an order dated 9th November, 2009 holding that the issues were debatable and also required further investigation/enquiry.;