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2016 (6) TMI 452 - AT - Income TaxReopening of assessment - Deduction under section 80IB(10) allowed excessively to the extent that it is beyond the amount of income under the head ‘business or profession’ - CIT(Appeals) allowing assessee’s claim for deduction under section 80IB(10) to the extent of gross total income and not restricting the same to extent of income under the head ‘business and profession’ - Held that:- It is a trite law that ‘reason to believe’ referred to in Sec. 147 of the Act is one which is prudent and plausible in law and not based on any misconception either in law or on facts. In the present case, the reasons recorded clearly suggest that Assessing Officer is under a misconception in inferring that there is an excessive grant of deduction u/s 80IB(10) of the Act. Ostensibly, the proposition in the mind of the Assessing Officer is not borne out of the bare phraseology of the relevant provisions, as we have seen in the earlier part of this order, and rather, it is contrary to the legal position approved by the Hon’ble Bombay High Court in the case of J.B. Boda & Co. Pvt. Ltd. (2010 (10) TMI 1102 - BOMBAY HIGH COURT ). In view of the aforesaid discussion, in our view, the reasons recorded by the Assessing Officer suffer from an infirmity of being misconceived in law and, therefore, initiation of proceeding thereupon is bad in law. Consequently, the assessment finalised by the Assessing Officer u/s 143(3) r.w.s. 147 of the Act dated 6.12.2012 is held to be invalid and bad in law, and is hereby set-aside - Decided in favour of assessee.
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