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2010 (12) TMI 662 - AT - Income TaxReopening - Whether reopening of the assessment is bad in law - It is stated that this is the third year of the assessee's business and in the earlier years deduction claimed by the assessee was allowed by the Department itself - The Assessing Officer has reopened the assessment on the basis of the decision of the hon'ble Supreme Court, therefore, initiation of proceedings under section 147/148 are not bad in law - In the earlier year the decision of the hon'ble Supreme Court in the case of Lucky Minmat P. Ltd. [2000 -TMI - 5818 - SUPREME Court] was not available - This decision came after passing the order under section 143(1) and within the time allowed the Assessing Officer issued notice under section 147/148 based on the judgment of the hon'ble Supreme Court - Therefore, it cannot be said that reopening of the assessment was bad in law Regarding deduction u/n 80-IB - The hon'ble Rajasthan High Court in the case of Arihant Tiles and Marbles P. Ltd. (2007 -TMI - 2290 - HIGH COURT, RAJASTHAN) has examined the issue in depth and found that the decision of Lucky Minmat P. Ltd. (2000 -TMI - 5818 - SUPREME Court) is distinguishable on the facts of that case - Held that: conversion of marble blocks into slabs and tiles amounts to manufacture of thing or article within the meaning of section 80-IA/80-IB entitled to claim deduction thereunder - The undertaking of the assessee employed 10 or more workers which carried on the manufacturing process with the aid of power and where the manufacturing activity is carried out with the aid of power, then requirement as per section 80-IB is to employ workers 10 or more. In the case of the assessee there are 15 workers employed. Copies of power bills are also placed in the compilation - Decided in the favour of assessee
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