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2009 (11) TMI 58 - HC - Income TaxReassessment – full and true disclosure – section 147 – held that - because a pure finding of fact has been recorded to the effect that the re-assessment proceedings have rightly been initiated after framing the opinion that some income chargeable to tax has escaped assessment. Under Section 147 of the Act, after its amendment with effect from 1.4.1989, wide power has been given to the Assessing Officer even to cover the cases where the assessee had fully disclosed the material facts. The only condition for action is that the Assessing Officer should have reason to believe that the income chargeable to tax had escaped assessment. Such belief can be reached in any manner, and is not qualified by a precondition of faith and true disclosure of material facts by the assessee as contemplated in the pre amended Section 147 (a) of the Act - as far as merits of the case is concerned, with regard to the permissible deduction under Section 80-IB of the Act, it is clear position that the assessee was not entitled to claim deduction on account of Duty Draw Back and DEPB incentives, as these incentive profits do not fall within expression “profits derived from industrial undertaking” in Section 80-IB of the Act. Therefore, Duty Draw Back and DEPB do not form part of net profits of the industrial undertaking for the purposes of Section 80-IB of the Act. – Decided against the assessee
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