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2017 (5) TMI 685 - HC - Income TaxReopening of assessment - addition u/s 14A and 10B - Held that:- Deduction claimed by the assessee towards expenses under Section 14A read with Rule 8D was gone into and specifically discussed by the Assessing Officer at the time of framing of the scrutiny assessment. Number of queries came to be raised, and which came to be answered by the assessee. That thereafter, even the Assessing Officer also made a further deduction of ₹ 1 lac. Therefore, the said issue was specifically discussed and gone into by the Assessing Officer at the time of framing the original assessment, which was scrutiny assessment under Section 143 [3] of the Act. Under the circumstances, this is a clear case of change of opinion and hence, reopening is bad. It cannot be said that there was any failure on the part of the assessee in disclosing true and correct facts necessary for the assessment. Even with respect to the deduction claimed under Section 10B it is required to be noted that even the said issue was gone in detail by the Assessing Officer. The assessee produced certificate asked by the Assessing Officer and thereafter, the Assessing Officer, after having satisfied with the deduction claimed under Section 10B of the Act, allowed such deduction claimed under Section 10B of the Act. Therefore, there was no failure on the part of the assessee in disclosing true and correct facts. At this stage, it is required to be noted that even in respect of some of the earlier years/previous assessment years, similar deduction under Section 10B of the Act has been allowed in the case of very assessee. At this stage, it is required to be noted that even for A.Y 2008-2009 on the very ground, the assessment was sought to be reopened, which has been set-aside by the Division Bench of this Court Thus there does not appear to be any failure on the part of the assessee in not disclosing true and correct facts. - Decided in favour of assessee.
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