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2017 (9) TMI 1752 - HC - Income TaxValidity of Reopening of assessment - Revision petition u/s 264 - eligibility to deduction u/s 10B - Held that:- The assessee's claim of deduction u/s 10B was examined minutely by the Assessing Officer. The assessee pointed out that it enjoyed certification under STPI. If the AO was of the opinion that such certification was inadequate and did not substitute for the requirement of approval by the Board appointed by the Government of India, under the Industries (Development and Regulation) Act, 1961, it was always open for the Assessing Officer to examine this issue further or to reject the assessee's claim in its entirety. He however, accepted the claim accepting the assessee's certification as sufficient compliance with the statutory requirements. There was no failure on part of the assessee to disclose necessary facts. Both on the ground of the non failure of assessee to disclose necessary facts and on the ground of scrutiny during original assessment proceedings, notice of reopening on this issue was not permissible. The Assessing Officer as well as the Commissioner both failed to appreciate this legal lacuna in the notice of reopening. As department had pointed out that the return of the assessee for the earlier assessment years were accepted under section 143(1) of the Act without scrutiny. We have therefore, not based our conclusion on the third contention of the petitioner's counsel that being a continuous claim, same could not have been disturbed for the later year without withdrawing the benefits of the initial years of assessment. We leave this question open to be examined in appropriate proceedings, if need so arises. - Decided in favour of assessee
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