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2019 (7) TMI 1323 - HC - Income TaxDeduction u/s 80IA in respect of AMC charges, other income and in erroneously adding back interest income - HELD THAT:- As decided in M/S. DIEBOLD SYSTEMS P. LTD. VERSUS THE ACIT [2019 (7) TMI 543 - MADRAS HIGH COURT] assessee was not able to establish before the AO by producing records. AO after examining the facts of the case, found that the income earned from AMC (Annual Maintenance Charges of ATM), installation and technical charges, consultation charges and licence fee of software do not constitute income from the industrial undertaking since this was not derived from the industrial undertaking, as the men, material and machinery of the Pondicherry industrial undertaking were not used to earn income and therefore, correctly denied deduction u/s 80IA - Decided against assessee. Reopening of assessment u/s 147 - HELD THAT:- On a perusal of the re-assessment order dated 16.03.2006 and the reason for reopening is based on the information which came to the notice of the AO during the course of the assessment proceedings for the assessment year 2001-02 during which the AO came to know that the assessee does not carry out any maintenance work from its industrial unit at Pondicherry. Thus, the reason for reopening in the instant case was based upon the tangible material which came to the notice of the Assessing Officer subsequent to the intimation u/s 143(1). Therefore, the re-assessment initiated u/s 143(3) r.w.s 147 is perfectly legal and valid. We hold that the decision in Tanmac India [2017 (1) TMI 122 - MADRAS HIGH COURT] and Orient Craft Ltd. [2013 (1) TMI 177 - DELHI HIGH COURT] cannot be applied to the assessee's case and the decisions of the Hon'ble Supreme Court in Rajesh Jhaveri Stock Brokers Pvt. Ltd. [2007 (5) TMI 197 - SUPREME COURT] and Zuari Estate Development and Investment Co Ltd., [2015 (8) TMI 480 - SUPREME COURT] are a clear answer to the case of the assessee. Decided against the assessee.
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