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2016 (6) TMI 637 - AT - Income TaxReopening of assessment - reasons to believe - whether the proceedings under sec. 147 of the Act were initiated merely on the change of opinion? - Deduction u/s 10B wrongly claimed - Held that:- AO has not applied his mind at all. The order passed by the AO is flimsy and one page order which shows total non application of mind and the assessment order (original) dated 9.10.2009 has not discussed any issue much less the issue under sec. 10B and the basis of calculation giving the benefit of sec. 10 B to the assessee. Even assuming the information which were supplied by the assessee, as per question no. 9 & 25 of the paper book , then also this information was not correct and complete information i.e was not a sufficient disclosure. In our view the assessee has wrongly claimed the deduction of ₹ 22,91,771/- as mentioned by the AO. In our view the AO is required to form his opinion one way or the other and also required to adjudicate on the entitlement and quantum of the assessee for the deduction under section 10B of the IT Act on the basis of complete information. In our view though the information were supplied but that was not sufficient for the AO for completing the assessment u/s 143(3) by applying his mind and form his opinion. In our view, there was no opinion formed, therefore, we do not find any merit in the submission of the ld. A/R that there is a change of opinion. In view thereof, we reject the ground of the assessee that reassessment was bad in law. Deduction u/s 10B computation - Held that:- The total profit of business has been mentioned at ₹ 66,32,853/- and total profit of undertaking was mentioned at ₹ 29,33,736/-. Total turnover of the undertaking as well as export turnover was mentioned as ₹ 46,99,000/- whereas the total turnover of the business has been mentioned as ₹ 8,81,97,775/-. The total profit of the undertaking and total turnover of the undertaking is required to be applied, as per the formula accepted in terms of section 10B(4) of the IT Act. AO has correctly applied the formula but has applied wrong figure. In view thereof, we have no option but to remand the matter to the file of the AO to recalculate the deduction after applying the correct formula as mentioned under section 10B(4) of the IT Act. - Decided partly in favour of assessee for statistical purposes.
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