2009 (5) TMI 14 - SC - Income Tax

Income Form setting up units in Exemption Area (u/s 80IA) - Huge profit of about 49% to 66% of sales - AO conducted survey u/s 133A and after verification accepted the return submitted by the assessee - as per the order of the AO it appears that he has passed the order on the direction of CIT - in the meantime CIT and transferred - new CIT has passed an order u/s 263 as, "I am left with no alternative but to decide the proceedings on the basis of material on record. In the assessment year under review, I estimate the assessee's income from Units at Parwanoo at 5% of the declared turnover. The income shown in excess of 5% amount is treated as undisclosed income from undisclosed sources. As the assessee does not fulfill many of the conditions for being entitled to deduction u/s 80IA/IB, no part of the total income, not even the one estimated @ 5% of the turnover at Parwanoo, would be entitled for deduction u/s 80IA/IB" - Further notice u/s 148 issued for previous assessment years - in this matter honorable SC ordered to reopen the assessment.