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2023 (1) TMI 429 - BOMBAY HIGH COURTReopening of assessment u/s 147 - Container Freight Station (CFS) is not an eligible infrastructural facility as provided in Explanation to Section 80-IA(4) of the Act and that the claim of deduction of the assessee on this account was not in order which had resulted in under-assessment of income and the same has escaped assessment - HELD THAT:- Admittedly, since the notice u/s. 148 was being issued after the expiry of four years from the end of the relevant assessment year, no action could be taken u/s. 147, after expiry of the said period unless it could be shown that the income chargeable to tax had escaped assessment by reason of the failure on the part of the assessee, inter-alia, to disclose fully and truly all material facts necessary for the assessment for that assessment year. In the present case, from the record, it is quite clear that when the return fled by the petitioner was taken up for scrutiny assessment, information was called for by the Assessing Officer. The petitioner, in response to the notices so received, had submitted a note in regard to the claim for deduction under Chapter VI-A which is on record. The reasons recorded by the AO do not at all elucidate as to what material was not disclosed fully and truly, failure of which had led to the income escaping assessment. This Court, in the case of Continental Warehousing Corporation Ltd. 2015 (5) TMI 656 - BOMBAY HIGH COURT was considering the order passed by the Tribunal which had held the assessee in that case entitled to the benefit under section 80-IA(4) of the Act based upon the earlier view expressed by a Special Bench of the Tribunal as also the Delhi High Court in Container Corporation of India Ltd. (Supra). The Special Bench had held that the case of Container Freight Station was similarly situate as that of an Inland Container Depot (ICD) inasmuch as both carried out similar functions of warehousing, customs clearance and transport of goods from its location to sea-ports and vice-versa. This Court in Continental Warehousing Ltd. (Supra) upheld the view of the Tribunal. In the present case, even the objections raised by the Director General of Audit (Central) Mumbai leading to the initiation of reassessment proceedings would not anymore furnish a sound basis for alleging that the income had escaped assessment on account of a claim having been wrongly allowed under the said section. Be that as it may, we have no hesitation in holding that the notice impugned as also the order rejecting the objections, are unsustainable in law and are accordingly quashed.
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