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2018 (4) TMI 576 - HC - Income TaxReopening of assessment - failure of the AO to apply the mind during the regular assessment - allowing deduction u/s 80IC in respect of component of “other income” which was not derived from industrial undertaking - Held that:- In this case the Assessing Officer consciously considered the claim for deduction under Section 80IC of the Act as is admittedly evident from the issues raised during the regular assessment proceedings. This by itself would be evidence of the fact that the Assessing Officer had occasion to apply his mind to the claim for deduction under Section 80IC of the Act during the regular assessment proceedings and had taken a view on the claim of deduction under Section 80IC of the Act. The reasons in support of the impugned notice is not premised on the fact that he had not applied his mind to the claim for deduction under Section 80IC during the regular assessment proceedings in respect of the income/receipts which were not derived from its paper and pulp unit to claim benefit under Section 80IC of the Act. It proceeds to exclude the above income from the claim for deduction on account of omission by the Assessing Officer during the regular assessment proceedings. This is different from non-application of mind to claim for deduction under Section 80IC of the Act. As held by this Court in Hindustan Lever v. Wadkar (2004 (2) TMI 42 - BOMBAY High Court) the reasons in support of the reopening notice has to be read as it is. No additions and/or inferences are permissible. Moreover, the power under Section 147/148 of the Act is not to be exercised to correct mistakes made during the regular assessment proceedings. - Decided against revenue.
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