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2016 (5) TMI 920 - AT - Income TaxReopening of assessment - Deduction under section 80IB disallowed for non-submission of audit report in form No.10CCB - Held that:- Where the assessee had fully and truly disclosed all the material facts vis-à-vis computation of income in its hands, the reassessment proceedings, if any, could be initiated against the assessee within four years from the end of relevant year and where the reassessment proceedings are initiated beyond the period of four years, the same is to be held to be invalid. The records of proceedings in the present case reflect that return of income was filed on 31.10.2003 along with which a note was appended vis-àvis its claim of deduction under section 80IB of the Act. The Assessing Officer during the course of original assessment proceedings failed to allow any opportunity to the assessee to furnish the audit report. However, after passing of assessment order under section 143(3) of the Act, dated 30.03.2006, the assessee moved rectification application under section 154 of the Act along with copy of accountant’s report in form No.10CCB in respect of its claim of deduction under section 80IB of the Act. The Assessing Officer accepted the contention of assessee and observed that it was a mistake apparent from the record and passed rectification order under section 154 of the Act, dated 28.02.2007 granting deduction under section 80IB of the Act. These proceedings reflect that a mistake which had crept in the order of assessment was acknowledged by the Assessing Officer while passing rectification order. Accordingly, we hold the reassessment proceedings to be invalid both on account of being beyond four years and also on account of change of opinion. Since after adjustment of brought forward losses, the income in the hands of assessee is reduced to Nil, and where the assessee would not be entitled to the benefit of deduction under section 80IB of the Act in the absence of any profits, there is no merit in reassessment proceedings initiated against the assessee. Accordingly, we cancel the same holding the relevant proceedings to be invalid and beyond limitation period prescribed in the Act.- Decided in favour of assessee
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