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2017 (6) TMI 76 - AT - Income TaxReopening of assessment - reasons to believe - Held that:- In the present case, the assessee has not informed to AO that construction work did not progress due to acquisition proceedings initiated by Government. As per Explanation 2 of Section147, it is very clear that due to non-disclosure of this by the assessee, the income chargeable to tax had escaped assessment. The assessee has not produced anything before the Commissioner of Income Tax (Appeals) to show as to how the assessee is entitled for deduction u/s.80-IB(10) of the Act. In view of the explanation (1) it does not mean that there was no default on the part of the assessee. Hence, reopening u/s.147 is held to be valid. The assessee has tried to take shelter under the exception provided in that section. But as stated above, when the assessee has not disclosed fully and truly the facts necessary for the assessment and there is no assessment u/s.143(3) of the Act, this proviso will not come to its rescue. Consequently, we hold that the entire reassessment proceeding in this case is valid and therefore, the action of the Assessing Officer is upheld. Disallowance u/s.80-IB(10) - Held that:- In this case, admittedly, the project was not completed and it brought on record by the lower authorities that 66 customers out of 88 customers have chosen to take over the property on their own from the assessee. The project of assessee not at all completed when the project was not completed it is appropriate to withdraw the deduction already given to the assessee u/s.80-IB(10) of the Act. On this issue, we do not find any infirmity in the order of the Ld.CIT(A) and the same is confirmed. Hence, this ground of assessee’s appeal is rejected.
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