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2016 (11) TMI 284 - AT - Income TaxReopening of assessment - assessee is earning high level of operating profits and consequently the claim of assessee of deduction u/s 10A of the Act is excessive - Held that:- The reopening based on the findings in the assessment proceedings of subsequent years cannot be used to reopen assessment of previous assessment years when there was no specific allegation with regard to the order in question. Here also we have perused the order of the Tribunal dated 26.08.2014 in case of the assessee for Assessment Year 2009-10 whereby an addition with respect to disallowance u/s 10A has been deleted. Almost two years have passed after the date of pronouncement of the order. On a specific question of the bench about filing of the appeal against this order before higher forum the parties could not point out whether an appeal has been filed before Hon”ble Hon'ble Delhi High Court against the order of the Tribunal. In AY 2006-07, Hon'ble Delhi High Court did not quashed reopening notice only because of the reason that there was still time for filing the appeal by revenue before the Hon'ble High Court. In the present case the time limit has already been expired for filing of appeal against that order. In view of this we are of the opinion that when the very basis for the issue of notice u/s 148 no longer survives, the reopening is invalid on that count. Interest earned on deposits with banks - amount shown by the assessee under the head “business income but according to AO it is taxable under the head “income from other source” - Held that:- As there is no order framed in the case of the assessee u/s 143(3) and return is accepted u/s 143(1) of the Act we are of the view that there is no error in the order of the ld CIT(A) in upholding the validity of the reopening following the decision of the Hon'ble Supreme Court in the case of ACIT Vs. Rajesh Javeri Stock Brokers Pvt. Ltd. [2007 (5) TMI 197 - SUPREME Court]. In view of this we uphold the reopening of the assessment in the case of the assessee u/s 147 of the Act Reduction in deduction available u/s 10A - Held that:- In view of admission of the parties that there is no change in the facts and circumstances of the case in the present year compared to Assessment Year 2009-10 , therefore following the decision of the coordinate bench we delete the addition made by the Assessing Officer in restricting the amount of deduction claimed u/s 10A of ₹ 39280361/- to ₹ 11374842/-. denying deduction u/s 10A on interest income from bank deposits - Held that:- No infirmity in the order of the ld CIT(A) in holding that the interest income earned by the assessee on surplus funds is chargeable to tax under the head income from other sources and not business income. Non granting the set off and carry forward unabsorbed amount of depreciation - Held that:- From the detail available on record it is not possible to ascertain about the exact claim of depreciation which remained unabsorbed in the hands of the assessee same is allowable to assessee as current years depreciation as per provisions of section 32(2) of the Act. In view this we set aside this ground of appeal to the file of Assessing Officer to grant set off of this, sum if any remaining unabsorbed , in accordance with provision of section 32(2) of the Act making consequential adjustment to the computation of income after affording opportunity of hearing to the assessee
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