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2011 (11) TMI 413 - AT - Income TaxReassessment - assessee filed its return of income declaring income of Rs. 1,31,43,480/- on 30/10/2002 which was processed under section 143(1) of the Act - The assessing officer completed the assessment after allowing deduction under section 80-HHC keeping in view the amendment brought into statute by the Taxation Laws (Amendment) Act, 2005 with retrospective effect from 1/04/1998 - proviso to section 147 where an assessment is made under section 143(3) or u/s 147, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year - it is clear that for assumption of jurisdiction under section 147, the AO is required to issue notice within the time limit specified under section 149 of the Act - there is no issue of sanction to be obtained by the assessing officer before issue of notice u/s 148 from the competent authority which in fact has been obtained by the assessing officer - the assessee vide its letter dated 16/11/2009 (filed on 1/12/2009), filed the reply challenging the reopening of assessment on legal plea that the reopening was based on change of opinion as also supported his claim for deduction under section 80-HHC in respect of DEPB receipts in the light of amendment brought into statute - It is a mere procedural lapse or an irregularity and not illegality making the assessment bad Regarding contention of the assessee is that the reasons recorded are vague and there is no allegation as to what amount of income had escaped assessment - it is clear that for the year under consideration turnover of the assessee was more than Rs.10 crores - There is no dispute about the fact that the AO has not quantified that the amount of income escaped because applicability of the said provisos - AO computed deduction under section 80-HHC by reducing sale of DEPB receipt from profits of business and thereafter computing deduction as per amended provisions of section 80-HHC - Decided against the assessee
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