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2016 (1) TMI 403 - AT - Income TaxReopening of assessment - disallowance of claim u/s 10B - Held that:- t is an undisputed fact that, assessee is a 100% EOU; eligible for deduction u/s 10B on the profits derived from such undertaking; it has commenced its production/manufacturing from the assessment year 1994-95; and the period of 10 years there from would be available up till assessment year 2003-04. However, the assessee as per then relevant provision of section 10B had chosen the initial assessment year AY 1997-98 and started its claim for deduction u/s 10B from AY 1997-98 onwards. In support of its claim, it has filed an Audit report as per the requirement of section 10B along with the return of income. The Ld. AO during the course of the original assessment proceedings has specifically embarked upon this issue and has noted the fact about the period of manufacturing; period of claim of deduction and also the overall components of profit of 10B as we have noted above. After examining the various issues relating to section 10B, he has computed the deduction u/s 10B. Thus, from the face of the assessment order it appears that, AO has applied his mind and has reached to a certain conclusion in respect of claim u/s 10B.From the perusal of the “reasons recorded”, it is evident that there is no whisper or reference about any tangible material coming on record having live-link-nexus with the income chargeable to tax escaping assessment. AO in the original assessment order has applied his mind and even noted down the entire facts and has computed the deduction u/s 10B. It is not a case where the assessment order is sub-silentio on the issue on which reasons have been recorded. Accordingly, on preliminary ground, we hold that the impugned assessment order passed u/s 143(3) r.w.s. 147 passed in pursuance of notice u/s 148 is void-ab-initio and deserves to be quashed. We order accordingly. - Decided in favour of assessee
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