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here is no provision in that section to eliminate the dividend income from specified foreign company before setting off of loss and similar to the provisions and specific direction present in section 115BBE. In our considered view that taxable income has to be determined as per the provisions of Income Tax Act i.e. first to compute the total income based on the Chapter-IV and then apply the Chapter-VI and VIA in order to compare the aggregation and set off of losses. After determining the taxable income by applying the above Chapters and if still there is profit, then such taxable profit has to be taxed according to the prevailing rates as per the various applicable provisions of the Act. Since assessee is having substantial loss and as per the provision of Chapter-VI, the taxable income has to be adjusted first before applying any other provisions contained in the Act particularly when there is no specific provision contained in section 115BBD wherein to impose restriction on carrying forward any loss similar to provision contained in section 115BBE and section 115BBDA. Therefore, we do not see any reason to treat this assessment as erroneous nor it is passed by erroneous interpretation of facts or law. Accordingly, the order passed u/s 263 of the Act by Ld. CIT is not as per provisions contained therein or as per the jurisdictional precedence. Hence, it is set aside. Resultantly, the grounds raised by the assessee are allowed. 9. In the net result the appeal filed by the assessee is allowed.

Shanti Prime Publication Pvt. Ltd.

Sec. 263 of Income Tax Act, 1961— Revision — Assessee was a company engaged in the business of manufacturing of chassis and vehicles for transport of goods and passengers including motor car and parts thereof. The assessee filed its return of income on 29.11.13 declaring current year loss under the normal provisions of the Act and income under section 115JB of the Act. Further the case was selected for scrutiny under CASS and various statutory notices were issued and served on the assessee. The assessment was completed u/s 143(3) r.w..s 144C(3) of the Act on 25.01.17 by determining the total loss under normal provisions of the Act and book profit u/s 115JB of the Act. CIT invoked the provisions of section 263 of the Act and issued a notice with the observation that assessee has received dividend from specified foreign company as defined u/s 115BBD CIT further observed that as per the provision of section 115BBD, the dividend amount needed to be taxed separately @ 15% which was not done by AO resulting in short levy of tax and corresponding interest u/s 234B of the Act. Further, interest u/s 244A already provided and MAT credit also needed to be withdrawn. Accordingly, assessee was asked to submit the submission in this regard and in response, assessee filed a detail written submission on this matter.
Tribunal do not see any reason to treat this assessment as erroneous nor it is passed by erroneous interpretation of facts or law. Accordingly, the order passed u/s 263 of the Act by CIT was not as per provisions contained therein or as per the jurisdictional precedence. Hence, it was set aside. Therefore, the grounds raised by the assessee were allowed. The appeal filed by the assessee is allowed. --- TATA MOTORS LTD. vs. Deputy CIT. [2020] 23 ITCD Online 56 (MUM)