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2015 (1) TMI 831 - HC - Income TaxReopening of assessment - assessee company, while computing the deduction u/s 80HHE has adopted incorrect turnover which has resulted excess claim of deduction U/s 80HHE to the tune of ₹ 46,65,749/- - Held that:- The re-opening of the assessment in the case at hand through notice under Section 148 of Income Tax Act issued on 22.03.2010 fails to pass the muster on both the tests. The satisfaction note does not disclose the foundation of “reasons to believe” as it vaguely refers to the perusal of “the records” without specifying the fresh “tangible material” that had come to light giving rise to a need for such action. Since the assessment had earlier been concluded under Section 143(3) by order dated 21.09.2007, the restrictions on the exercise of the power of re-assessment as contained in the first proviso to Section 147 would inhibit further action in absence of material showing default by the assessee to fully or truly disclose. In the above facts and circumstances, we concur with the view taken by the CIT(A) that it is a case of impermissible change of opinion. The order whereby the proceedings have been re-opened for assessment under Section 147/148 of Income Tax Act, thus, is found to suffer from jurisdictional error. Consequently, the proceedings taken out in its wake cannot sustain. - Decided in favour of assessee.
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