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2014 (10) TMI 208 - AT - Income TaxReopening of assessment u/s 148 – Reason to believe - Held that:- The assessee is a pharmaceutical drug manufacturing company - The company started manufacturing at Khatraj from 15-09-1997 - the assessee claimed deduction u/s. 80IB(10) of the Act in AY 2003-04, 2004-05 and 2005-06 which was allowed by the AO in the assessment orders passed u/s. 143(3) of the Act - Thereafter, the AO reopened the assessment for all the three years by issuing notice u/s. 148 of the Act on the ground that as per section 11 of the Industrial (Development & Regulation) Act, 1951 as amended vide SO 857(E) dated 10.12.1999, Small Scale Undertaking is an industrial undertaking in which investment in fixed assets in plant and machinery does not exceed ₹ 1 crore - the "alleged reasons to believe" were formed on the basis of balance sheet filed along with the return of income by the assessee which was available with the AO at the time of framing of the original assessment - It cannot be held that this material was not available – relying upon Parashuram Pottery Works Co. Ltd. Vs. ITO [1976 (11) TMI 1 - SUPREME Court] - in the alleged reasons as recorded, no material external to the record which was available has been brought on record for issuance of notice u/s. 148 of the Act - the issuance of notice u/s 148 for AY 2003-04, 2004-05 and 2005-06 cannot be upheld and are to be set aside – Decided in favour of assessee.
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