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2016 (7) TMI 1004 - AT - Income TaxReopening of assessment - deduction claimed u/s 80IB - Held that:- The assessee had furnishes details and explanations which were considered by the AO and the deduction claimed in the return of income was duly accepted, the AO cannot reopen assessment for the reason that deduction u/s 80IB was wrongly allowed and doing so would amount to reopening assessment on a change of opinion. In the facts and circumstances of the present case we are of the view that the belief entertained by the AO cannot be said to be a honest belief. For the reasons given above we are of the view that the initiation of reassessment proceedings in the present case was not legal and therefore the order of re-assessment is liable to be annulled and is hereby annulled. In view of the decision of the Cross Objection we are of the view that no adjudication of the grounds raised by the revenue in its appeal is called for. Eligibility of deduction u/s 80IC - Held that:- CIT(A) has rightly come to the conclusion that in respect of unit which claimed deduction earlier u/s 80IB of the Act such unit will continue to get the benefit of deduction of 80IC of the Act subject to the limitation of ten year period. The deduction for an undertaking making substantial expansion of the existing undertaking is not applicable in the case of the assessee. We are of the view that the conclusions drawn by CIT(A) on this issue are fully justified and does not call for any interference. Accordingly this appeal of the revenue is dismissed.
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