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2014 (6) TMI 263 - HC - Income TaxValidity of notice for reopening u/s 148 of the Act Effect of amendment w.e.f. 1.4.2000 of explanation to sub-section (13) of section 80IA of the Act Held that:- The AO has made a mention of the amendment brought by Finance Act, 2009 with effect from 1.4.2000 by which an explanation to sub-section (13) of section 80IA has been inserted - The requirement of law since is not fulfilled by the assessee for being the work contractor and not the developer, according to the AO, he is found not entitled to claim deduction u/s 80IA of the Act and therefore huge sum of Rs.6.40 crores claimed by way of deduction escaped the assessment Constitutional validity of retrospective amendment through explanation below sub-section (13) of section 80IA by Finance Act, 2009 has been decided in Katira Construction Ltd. v. Union of India [2013 (3) TMI 416 - GUJARAT HIGH COURT] has upheld the validity of the same. If an explanation is added to a section of a statute for the removal of doubts, the implication is that the law was the same from the very beginning and the same is further explained by way of addition of the Explanation - it is not a case of introduction of new provision of law by retrospective operation the assessee had disclosed all the materials regarding its activities and there was no suppression of materials - the AO gave benefit of the provision by considering the then Explanation which was substantially the same and thus, it could not be said that any income escaped assessment in accordance with the then law - the AO has now given a second thought over the same materials and according to him, as the assessee is a contractor or supplier of irrigation products, it cannot be called a developer of any new infrastructural facility. The only ground which had made the AO to initiate proceedings of reassessment is the insertion of explanation to sub-section (13) of section 80IA which substituted earlier explanation giving retrospective effect to the said provision from 1.4.2000 - Such provision being always there on the record and the AO having already scrutinized the entire issue threadbare, even though notice is issued within four years from the end of the relevant assessment year, issuance of such notice has to be held as nothing but a change of opinion on the part of the AO - assumption of jurisdiction itself is not permissible thus, the order is set aside - Decided in favour of Assessee.
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