Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2013 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (3) TMI 36 - HC - Income TaxRe-opening of assessment - As per AO assessee was not entitled to deduction u/s 801C as the petitioner’s product namely PET bottles fall within the negative list stipulated in serial No. 20 of the 13th schedule of the said Act - AY 2005-06 - assessee contested against invoking extended period - Held that:- As noted the arguments the petitioner that the product manufactured by them falls under 3923.30.90 of the Central Excise Classification which is not within the range of products specified in serial No.20 of the 13th schedule of the said Act, that is, within headings 39.09 to 39.15. Therefore clearly the submission of the petitioner is correct. The petitioner’s product does not fall within the negative list stipulated in the 13th schedule of the said Act. If that be the case, then, the answer given by the petitioner in serial No. 14(ii)(e) of form 10 CCB filed along with the return is not wrong, false or inaccurate. Therefore, the petitioner cannot be held to have failed to fully and truly disclose all material facts necessary for its assessment. Insofar as the other assessment years are concerned where the issue of limitation of four years does not arise, the position would not be any different because on a reasonable interpretation of the provisions of section 80-IC(2) read with serial No. 20 of the 13th schedule of the said Act read with the first schedule to the Central Excise Tariff Act, 1985, it would be clear that the petitioner’s product does not fall within the negative list and therefore the petitioner had rightly claimed deduction under section 80-IC of the said Act which the assessing officer in the years in which the assessment had been completed under section 143(3) had allowed after examining the necessary evidence. Even in respect of the year in which there was no assessment order under section 143(3), that is, the assessment year 2007-08, the same cannot be re-opened because no reasonable person can be attributed with any reason to believe that income had escaped assessment when the petitioner’s product clearly does not fall within the negative list. Thus AO could not even have taken the prima facie view that there were reasons to believe that income had escaped assessment - the issuance of notices under section 148 was not warranted - in favour of assessee.
|