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2012 (7) TMI 96 - AT - Income TaxChallenge the reopening of the assessment by assessee - assessee contested that the change of opinion would not constitute valid information for assumption of jurisdiction u/s 147 - Held that:- Commissioner of Income Tax(Appeals) was not justified in holding that issuance of notice in the instant case was on the basis of change of opinion when it is an admitted fact that no assessment under Section 143(3) was made in the instant case, on the date of issue of notice under Section 148. Keeping in view the facts of the case that Form 10CCB filed during the year, the assessee has installed a wind mill costing Rs.3.02 crores on which depreciation at Rs.1.21 crores was claimed, but as per Schedule E, income from windmill was admitted at Rs. 6,31,000/- which in toto was claimed as deduction under Section 80-IA without taking into account the above depreciation of Rs. 1.21 crores. thus, the issue of notice under Section 148 cannot be held as invalid or on the basis of change of opinion - as decided in ACIT vs. Rajesh Jhaveri Stock Brokers Pvt Ltd [2007 (5) TMI 197 (SC)] - in favour of revenue. Eligibility for deduction on under Section 80-IA - Held that:- The profit derived from eligible unit is to be computed as if such eligible unit were the only source of income of the assessee during the relevant year,the assessee and CIT(A) has taken only a part of the revenue of the eligible undertaking whereas AO has taken as part of the revenue of the eligible undertaking and entire depreciation and interest ignoring the other expenses of the undertaking, for computing the profit derived from the eligible undertaking - as everybody ignored the value of power generated by the eligible undertaking used by the assessee in its other undertaking where activity of publishing of books were carried out as well as ignoring other expenses incurred for the eligible business except depreciation and interest,it shall be fair and in the interest of justice that the issue should be restored back to the file of the Assessing Officer for proper computation of profit derived from the eligible business.
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