Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 959 - AT - Income TaxReopening of assessment u/s 147 Power to review by AO Held that:- The AO reached the belief that there was escapement of income, on the basis of return filed by the assessee, after he accepted the return under section 143(1) without scrutiny, and nothing more - This was nothing but a review of the earlier proceedings and an abuse of power by the AO - There was nothing in the reasons recorded to show that any tangible material had come into the possession of the AO subsequent to the issue of the intimation - The notice reflected an arbitrary exercise of the power conferred u/s 147 of the Act - relying upon CIT-vs- Orient Craft Ltd. [2013 (1) TMI 177 - DELHI HIGH COURT] - reassessment proceedings initiated u/s. 147 of the Act by issuing notice u/s. 148 of the Act is set aside Decided in favour of Assessee. Profit from sales of DEPB taxable u/s 28(iiib) instead of entire sale consideration of DEPB Held that:- Only the net of sale consideration and face value of DEPB will be taxable under section 28(iiib) of the Act Relying upon Avani Exports Vs. CIT [2012 (7) TMI 190 - GUJARAT HIGH COURT] - assessee is eligible for deduction u/s 80HHC of the Act irrespective of any restriction of the export turnover Following the decision in Topman Exports Vs. CIT [2012 (2) TMI 100 - SUPREME COURT OF INDIA] - the face value of DEPB will fall under clause (iiib) of Section 28 of the Act and hence, the same is eligible for deduction u/s 80 HHC of the Act irrespective of any restriction of export turnover - the CIT(A) has rightly allowed the claim of the assessee Decided against Revenue.
|