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2015 (1) TMI 64 - AT - Income TaxValidity of notice for reopening of assessment u/s 147/148 - Jurisdiction to issue notice - Held that:- The assessee is a 100% EOU. The assessee also sold goods to another EOU to the extent of ₹ 10,12,61,099/- and deduction u/s. 10B of the Act to the extent of ₹ 4,26,30,184/- was claimed - on perusal of the original assessment order passed u/s. 143 it is seen that the Assessing Officer discussed issue of deduction - it cannot be said that the AO has not made an enquiry or applied his mind to the issue which was the subject matter of the reassessment proceedings and issuance of the notice u/s. 148 - assessee had made a disclosure in the notes forming part of the accounts of the nature of payments required to be made to the foreign principal on account of CDC - a reference was made to the fact that as a result of a circular issued by the RBI, the assessee was not permitted to remit a certain proportion equivalent to US $ 1.5 for each container - The statutory auditors had also included a note in the report - during the course of assessment proceedings, the assessee addressed a comprehensive letter dt. 18th Nov., 2009 making a full disclosure of facts – the AO specifically discussed in the course of the assessment order the matters in respect of which he has made a disallowance either fully or in part. Since the AO did not find any justification to reject the claim of the assessee in respect of the issue of CDC, there was no specific discussion in the course of order - the AO has considered the claim of the assessee by applying his mind - there was a decision on this issue in favour of the assessee when the assessment was completed u/s. 143(3) - merely because subsequently another decision of the Co-ordinate Bench of the ITAT is noticed by the AO, that will not vests the jurisdiction in the AO to exercise his powers u/s 147 – the AO was not justified at all to initiate the proceedings u/s. 147 and issued the notice u/s. 148 – thus, the proceedings initiated u/s 147 is set aside – Decided in favour of assessee.
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