Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (2) TMI 325 - BOMBAY HIGH COURTReopening of assessment - Petitioner not entitled to deduction under Section 80M of the Act - Held that:- Section 80M of the Act of the dividend received is concerned, the Counsel are agreed that the issue stands covered by the decision of this Court in favour of the Petitioner by virtue of Virtuous Finance Limited v/s. Deputy Commissioner of Income Tax(2014 (12) TMI 978 - BOMBAY HIGH COURT). Therefore, the first ground mentioned in the reasons in support of the reopening notice are not sustainable. Non consideration of diminution in value of investments - Held that:- As relying on Rallis India Limited v/s. Assistant Commissioner of Income Tax [2010 (3) TMI 164 - BOMBAY HIGH COURT] the validity of the notice issued by the Assessing Officer in seeking to reopen the assessment must be determined with reference to the reasons which are found in support of the reopening of the assessment. These reasons cannot be allowed to be supplemented on a basis which was not present to the mind of the officer and could not have been so present on the date on which the power to reopen the assessment was exercised. We, therefore, hold that the principle laid down by the Supreme Court in Max India (2007 (11) TMI 12 - Supreme Court of India) would be attracted to the present case. Consequently, it is evident that the order of the Assessing Officer with reference to the computation of book profits under section 115JB was at the least a probable view and as a matter of fact the correct view to take in view of the decision of the Supreme Court in HCL (2008 (9) TMI 18 - SUPREME COURT). Thus no warrant for reopening the assessment in exercise of the power conferred under Section 147 - Decided in favour of assessee.
|