The Tax Publishers2013 TaxPub(DT) 1636 (Bom-HC) : (2014) 055 (I) ITCL 0351 : (2013) 355 ITR 0102 : (2013) 214 TAXMAN 0183 : (2013) 089 DTR 0310

INCOME TAX ACT, 1961

--Reassessment--Full and true disclosure Non-disclosure of primary facts in respect of claim of deduction under section 80-IB--Assessee, manufacturer of grills, dampers, diffusers, etc., had claimed deduction under section 80-IB. Assessing officer after considering information on the nature of business and various other details furnished by assessee had passed an order under section 143(3) allowing the benefit of deduction under section 80-IB. Subsequently, assessing officer sought to reopen the assessment on the ground that the case would require a thorough verification of the manufacturing activity of the assessee in order to decide whether it was actually carrying out any manufacturing activity so as to become eligible for deduction under section 80-IB. Held: As regards assessment years 2006-06 and 2006-07, there was no failure on the part of assessee to disclose truly and fully all material facts necessary for assessment. It was also evident that during the course of assessment proceedings under section 143(3) assessing officer brought his mind to bear upon all relevant facts and circumstances bearing upon eligibility of the assessee to a deduction under section 80-IB. After, the detailed nature of the inquiry that was carried out by the assessing officer he allowed deduction under section 80-IB therefore, would be totally contrary to the record for the assessing officer to state that the nature of the activity of the assessee was not verified during the course of the assessment proceedings. As regards assessment years 2007-08 and 2008-09, it was noted that the claim of deduction under section 80-IB for earlier assessment years had been allowed in original order of assessment, therefore, the attempt on the part of assessing officer to reopen assessment for assessment years 2007-08 and 2008-09 would amount to change of opinion and would be unsustainable.

Income Tax Act, 1961 Section 147

Income Tax Act, 1961 Section 80-IB

In the Bombay High Court

D.Y. Chandrachud & A.A. Sayed, J.J.

Dynacraft Air Controls v. Sneha Joshi

Writ Petition (L) No. 54, 55 & 57 of 2013

8 February, 2013

Petitioner by : K. Shivram and Rahul Hakani

Respondent by : S.V. Bharucha

JUDGMENT

D.Y. Chandrachud, J.

Rule, by consent made returnable forthwith. Counsel appearing for the Respondents waives service on behalf of the Respondents. By consent, the Petitions are taken up for hearing and final disposal.

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT

TaxPublishers.in

'Kedarnath', 7, Avadh Vihar, Near Nirali Dhani,

Chopasni Road

Jodhpur - 342 008 (Rajasthan) INDIA

Phones : 9785602619 (11 am - 5 pm)

E-Mail : mail@taxpublishers.in / mail.taxpublishers@gmail.com