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2016 (8) TMI 517 - GUJARAT HIGH COURTReopening of assessment - Shri Nikunj Shah and Shri Jitendra Shah had issued bogus bills to various parties including the assessee and escaped income was stated to be only ₹ 1 lakh - deduction u/s 80HH of the Act on income not derived from industrial undertaking - Held that:- Considering the assessee’s revised return which was taken into account while completing the regular assessment as well as the reassessment, it is borne out that the assessee itself had disclosed income of ₹ 20 lakhs from the transactions carried on with said Shri Nikunj Shah and Shri Jitendra Shah in revised return which stood taxed and the Assessing Officer had not made any addition in the reassessment on this account. We are of the view that the Tribunal has rightly held that the Assessing Officer has travelled beyond the scope of Section 147 proceedings. The view taken by the Tribunal is just and proper and does not call for any interference by this Court. Even otherwise, the fact that no appeal has been preferred by the assessee against the order of CIT(A) nor any cross objection has been filed in one of the appeals will be covered by the decision of this Court in the case of Dahod Sahakari Kharid Vechan Sangh Ltd. (2005 (7) TMI 45 - GUJARAT High Court ). In that view of the matter, we are of the view that the Tribunal is justified in holding that the Assessing Officer had no jurisdiction to initiate proceedings against the CIT(A)’s order upholding the jurisdiction of the Assessing Officer to initiate reopening proceedings. Accordingly, the said question is answered in favour of assessee. Deduction u/s 80HH on income not derived from industrial undertaking is not being decided in view of the fact that we have already answered the question with regard to section 147 proceedings in favour of the assessee. So far as questions with regard to penalty proceedings are concerned, we are of the opinion that the same shall not survive in view of the fact that the substantial question has already been decided in favour of the assessee.
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