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2013 (11) TMI 198 - AT - Income TaxAssessment Order u/s 143(3) r.w.s. 147 of the Act - Re-opening of Assessment - Revenue contended that CIT (A) had erred in cancelling the reopening of assessment – Held that:- As seen from the copy of the satisfaction placed on record AO recorded “it was seen from the records that assessee had so arranged the affairs as to show extra ordinary profits from generation of electricity to avail higher 80IA deduction than admissible” - The extra profit was then worked out by AO on the basis of the information available in the record itself - In view of this since there was no failure on the part of assessee to disclose fully and truly all material facts, the order of the CIT (A) had to be upheld which was correct both on facts as well as on law - the Ld. CIT(A) had discussed extensively the reasons for reopening, the contentions of assessee and the decisions of various judicial authorities – the findings of Ld. CIT(A) as they were based on facts and applicable judicial principles was accepted –There was no dispute with reference to the fact that AO had issued notice under section 148 after four years from the end of the relevant assessment year - an assessment under section 143(3) was made earlier, the proviso to section 147 mandates that the reopening can be done only by the reason of failure on the part of assessee to disclose fully and truly all material facts necessary for assessment for that assessment year - Decided against Revenue. Deduction u/s 80IA - Assessee claimed deduction under section 80IA on self-utilized electricity produced in various generating units by taking the cost of sale at which it was procuring from various Electricity Boards and a note was accordingly left in the records - Held that:- There was no need to adjudicate the issue on merits by the CIT(A) once the reopening of the assessment itself was considered bad in law - The profit eligible for deduction under section 80IA had been rightly computed and allowed taking into account the market value of such goods as contemplated in section 80lA of the Act - The assessee has also objected to the re-opening of the assessment on the ground that the re-opening was done only on mere change of opinion – Following the Judgement of CIT, Delhi vs. Kelvinator of India Ltd. [2010 (1) TMI 11 - SUPREME COURT OF INDIA] and IL & FS Investment Managers Ltd. [2006 (11) TMI 181 - BOMBAY High Court ]. It has contended that all the details concerning the claim of deduction u/s 80IA in respect of power generating undertakings were disclosed in the computation of income and the Audit Report in form No. 10CCB - It was the contention of the assessee that the deductions u/s SOIA were allowed after due consideration of the details on record and submissions filed by the assessee, hence, any attempt to reopen the assessment on the same set of facts, was nothing but a change of opinion which cannot be a valid and legal ground justifying re-opening of the assessment - The assessee had also filed the assessment order passed u/s 143(3) to show that the deductions claimed by the assessee on these units were revised by the Assessing Officer, which only showed that the AO had, in fact, applied his mind to the issue of deduction.
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