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2016 (6) TMI 740 - GUJARAT HIGH COURTReopening of assessment - eligibility of deduction under section 80IA - Held that:- The entire issue was examined by AO during the original assessment proceedings. We may recall, during scrutiny assessment, the Assessing Officer raised several queries calling upon the assessee to satisfy him regarding the same. One direction was to submit complete note on deduction claimed under Section 80IA and to show how the company satisfied the provisions of the said section. In response to such query, the petitioner gave detail work out of its claim of deduction under section 80IA of the Act from generation of power. The assessee also provided the reason for transaction price interdivision since the power was generated for captive consumption. In the details so supplied, the petitioner pointed out that the cost of steam per kg was taken at ₹ 0.74. In the same table, the assessee had also pointed out that cost of steam is charged to the process at ₹ 0.80 per kg. Thus, the assessee in the process of substantiating its claim for deduction under section 80IA of the Act, pointed out the price for transferring generated electricity by one division to another. Such working out included the cost of production of steam and the cost at which it was charged to the consuming unit. It was only after verifying such details that the Assessing Officer in the order of assessment dated 31.10.2012, made no alteration in the petitioner's claim of deduction under section 80IA of the Act. He disallowed certain part of the petitioner's claim for depreciation, but no disallowance was made on the claim for deduction under section 80IA of the Act. In fact, in the assessment order he noted that the petitionerassessee had claimed the deduction on such power generation though, the power is captively used by separate industrial undertaking of the assessee company. It can thus, be clearly seen that the entire claim of deduction of the petitioner under section 80IA was minutely scrutinized by the Assessing Officer in the original assessment proceedings. As long as the claim was examined and no additions made, it would not be open for the Assessing Officer to reopen the assessment on the premise that in the original assessment, no reasons were recorded for not disturbing the claim. - Decided in favour of assessee
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