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Issues:
1. Validity of reopening assessment under section 147 based on new facts found in subsequent years. 2. Permissibility of changing opinion in reassessment under section 147. 3. Application of deduction under section 80-I based on undisclosed facts. 4. Consideration of primary facts for proper assessment. 5. Compliance with legal precedents in reopening assessments. Issue 1: Validity of Reopening Assessment under Section 147: The Assessing Officer made an assessment under section 143(3) for the appellant's income tax return of 1994-95. However, upon discovering new facts during the assessment for the subsequent year 1995-96, the Officer issued a notice under section 148 for the 1994-95 assessment year. The appellant contended that the notice was invalid, as the original assessment had already been completed. The Tribunal held that the mere completion of the initial assessment does not prevent reassessment under section 147 if new facts come to light or if the appellant failed to disclose primary facts. The Tribunal found the notice valid based on the new information discovered by the Assessing Officer during the 1995-96 assessment. Issue 2: Permissibility of Changing Opinion in Reassessment: The appellant argued that changing the opinion on the same set of facts is impermissible under section 147. However, the Tribunal noted that the Assessing Officer had not previously considered certain crucial facts, such as the actual construction of the plant by another entity, which were revealed during the 1995-96 assessment. The Tribunal held that the reassessment was justified due to the new facts that had not been disclosed earlier by the appellant, allowing the Assessing Officer to form a reasonable belief that income had escaped assessment. Issue 3: Application of Deduction under Section 80-I based on Undisclosed Facts: The appellant had claimed a deduction under section 80-I for the first time in the 1994-95 assessment year. Subsequent investigations revealed that the plant for which the deduction was claimed had been constructed by another entity. The Tribunal found that the appellant had not disclosed this crucial fact during the original assessment, leading to the allowance of the deduction based on incomplete information. The reassessment was deemed valid due to the new information that came to light during the subsequent assessment. Issue 4: Consideration of Primary Facts for Proper Assessment: The Tribunal emphasized the importance of disclosing primary facts for a proper assessment. In this case, the failure of the appellant to disclose all relevant information regarding the construction of the plant led to an incomplete assessment in the initial process. The Tribunal upheld the reassessment based on the principle that primary facts essential for accurate assessment must be presented to the Assessing Officer. Issue 5: Compliance with Legal Precedents in Reopening Assessments: The Tribunal referred to legal precedents, including the decision in Gurera Gas Cylinders (P.) Ltd. v. CIT, to support the validity of reopening assessments based on newly discovered facts not previously disclosed by the appellant. The Tribunal distinguished this case from precedents where complete disclosure had been made, emphasizing the significance of disclosing all primary facts for a fair and accurate assessment process. In conclusion, the Tribunal allowed the revenue's appeal, setting aside the CIT(A)'s decision, and remanded the case for a fresh decision on the merits of the appellant's claim under section 80-I, emphasizing the importance of disclosing all relevant facts for a proper assessment process.
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