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2015 (1) TMI 99 - ITAT PUNEValidity of notice for reopening of assessment u/s 147/148 - Change of opinion – Allowability of exemption u/s 10B - Held that:- The assessee company is a 100% Export Oriented Unit engaged in manufacturing of steel forging for export - the reasons recorded by the AO for issuing the notice u/s. 148 are verbatim as in the case of the present assessee – Following the decision in Magna Casting and Machine Works Pvt. Ltd., Pune Vs. Assistant Commissioner of Income Tax, Circle- 11(2), Pune [2015 (1) TMI 64 - ITAT PUNE] - the AO has allowed the deduction claimed by the assessee u/s. 10B - 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 - 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. Merely because subsequently another decision of the Coordinate 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 of the Act - the AO was not justified at all on the facts of this case to initiate the proceedings u/s. 147 and issued the notice u/s. 148 of the Act – thus, the proceedings initiated by the AO u/s 147 is set aside – Decided in favour of assessee.
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