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2013 (12) TMI 236 - AT - Income TaxDeduction u/s 80-IA – Held that:- The assessee was engaged in the activity of blending, processing and packaging of tea in its small scale industrial undertaking - In order to claim exemption under section 80-IA it is not enough that the unit should fall in the expression "industrial undertaking" for the purposes of sub-section (1) of section 80-IA alone, rather section 80-IA(1) itself prescribes that the exemption is available to an industrial undertaking, "to which this section applies" which reflects the import of the fulfilment of condition prescribed in sub-section (2) of section 80-IA - The assessee's activity amounts to processing only and it does not amount to either manufacture or production - The term "processing" has not been included in section 80-IA on account of clause (iii) of sub-section (2) of section 80-IA - The assessee is not entitled for deduction under section 80-IA – Decided in favour of Revenue. Validity of reopening of assessment – Held that:- There was no fresh material or a rational belief that certain income had escaped assessment on account of allowance of deduction under section 80-IA - The objection taken by the assessee has not been dealt with by the Commissioner of Income-tax (Appeals) in its proper perspective - The revisionary proceedings for the assessment year 2003-04 under section 263 has been initiated by the CIT on November 15, 2006 - The notice under section 148 in the instant assessment year was issued on March 30, 2006. Therefore, the CIT(Appeals) was wrong in his belief that the revisionary proceedings under section 263 by the Commissioner for the assessment year 2003-04 would constitute "information" for the AO in the instant assessment year – The issue was restored for fresh decision.
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