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2022 (5) TMI 1147 - AT - Income TaxReopening u/s 147 - Deduction u/s 80IC - whether the assessee’s allowance of claim of deduction u/s 80IC can be revisited by issuing notice u/s 148 of the Act especially when there has been no change in facts and circumstances of the case? - HELD THAT:- If the assessee’s claim for deduction is held to be allowable in assessment year 201314, there is no reason why the assessee’s claim is not allowable in assessment year 2012-13 (i.e. the year under appeal) when the Statute specifically provides allowance of claim of deduction @ 100% for the initial five assessment years. As far as the issue of having multiple initial assessment years for the purpose of claim of deduction is concerned, the same stands having attained finality by the order of the Hon'ble Apex Court in the case of Pr.CIT, Shimla Vs. M/s Aarham Softronics [2019 (2) TMI 1285 - SUPREME COURT] and there is no dispute about that. It is also to be mentioned again, even at the cost of repetition, that the AO himself had accepted the assessee’s claim for deduction @ 100% on substantial expansion in the original assessment proceedings and, therefore, without recording any cogent reason, which would justify the reopening, without pointing out any difference in the facts and circumstances of the case and without establishing that there has been some fraud or misrepresentation on part of the assessee, the claim once allowed cannot be revisited. Section 147 of the Act authorizes the re-opening of any assessment of a previous year. Section 148, which contains the conditions for re-opening assessments, including the limitation period within which notices can be issued, by its proviso. As to what can be the valid grounds for re-opening an assessment has been the subject matter of several decisions. In Income Tax Officer, Calcutta & Ors. vs. Lakhmani Mewal Das [1976 (3) TMI 1 - SUPREME COURT] the Hon'ble Apex Court held that the “reasons to believe” must be based on objective materials, and on a reasonable view. Thus basis for a valid reopening of assessment should be availability of tangible material, which can lead the AO to scrutinize the returns for the previous assessment year in question, to determine, whether a notice under Section 147 is called for. Accordingly, in view of the settled judicial precedents as noted above, we cannot endorse the reopening of the assessment in the present case. - Decided in favour of assessee.
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