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2012 (11) TMI 470 - AT - Income TaxReopening of assessment - claimed exemption u/s 10B for the assessment year 2004-05 which is the 11th year - Held that:- In the present case, it is not the case of the Revenue that the assessee had not furnished the relevant documents or the information at the time of the assessment. The original assessment order was passed on 29.9.2006. Thereafter, the order was revised by the AO on 23.3.2007. Subsequently, after the elapse of four years notice u/s 148 was issued. The reason for reopening does not fall within the ambit of the provisions leading to escapement of assessment as the assessee had started claiming deduction u/s 10B from the assessment year 1995-96 and not from the assessment year 1994-95. Therefore, 10th and the last year for claiming deduction under the provisions of section 10B is assessment year 2004-05 and not assessment year 2003-04 as has been wrongly held by the AO as well as the first appellate authority - in favour of assessee. Disallowance of deduction u/s 10B - Held that:- As decided in CIT Vs. DSL Software Ltd. [2011 (10) TMI 423 - KARNATAKA HIGH COURT] The said denial of the benefit runs counter to the spirit of section 10B and it would negate the object with which the amended provision was brought in. The assessee is entitled to the benefit of extension from 5 years to 10 years tax holiday as provided under the amended provision for 10 consecutive years from the date of commencement of production. The order has been passed by the CIT(A) in a non-judicious and arbitrary manner. The order is not only against the law laid down by the Hon’ble High Court but smacks malafide on the part of the CIT(A). As CIT(A) has committed "intellectual dishonesty" extending it to the limit of perversity. The impugned order has burdened the assessee with the avoidable cost of litigation before the Tribunal and harassment. The appeal of the assessee is allowed with costs of Rs.25,000/- - appeal in favour of assessee.
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