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2012 (3) TMI 329 - HC - Income TaxReopening - Commissioner of Income Tax, Delhi-III issued a certificate under Section 68(2) of the VDIS on 13.01.1998 and in this certificate mentioned the fact, inter alia, that for the assessment year 1997-98 a sum of Rs.7,23,490/- has been declared as business income under the VDIS - It appears that in the year 2005 the respondents filed their counter affidavit before the Allahabad High Court to the writ petition on the ground of lack of territorial jurisdiction and accepting the plea the Allahabad High Court dismissed the petitioner‟s writ petition by order dated 19.10.2007 - It was next contended that the reasons recorded for re-opening the assessment show that on a perusal of the return filed by the petitioner for the assessment year 1998-99 it was observed that in the previous year the petitioner had shown a taxable profit of Rs.42,79,340/-, but no return was found to have been filed by the petitioner for the assessment year 1997-98 and it was for this reason that notice under Section 148 of the Act was issued on the ground that income chargeable to tax for the assessment year 1997-98 had escaped assessment the petitioner was entitled to the deduction under Section 80-O of the Act in respect of its consultancy income of Rs.71,11,695/- which has been declared in its profit and loss account for the year ended 31.03.1997 - the assessee deducted 50% of Rs.71,11,695/- which comes to Rs.35,55,848/- as deduction under Section 80-O. If this figure is reduced from the profit figure of Rs.42,79,340/-, the balance comes to Rs.7,23,492/-. It was on this basis that the petitioner declared income of Rs.7,23,490/- for the assessment year 1997-98 under the VDIS - aDecided in favor of the assessee
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