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2017 (8) TMI 1299 - HIMACHAL PRADESH HIGH COURTReopening of assessment u/s 147 - Eligibility to claim deduction u/s 80-IC - business of information technology - objection in claiming deduction is being that since the Assessee does not possess NIC code and Excise Classification, it is not entitled to the statutory deduction - Held that:- We find the Assessing Officer to have committed grave illegality in correctly and completely construing the provisions of the Schedule. In fact, from the observations of the Assessing Officer, reproduced supra, it stands admitted that the code/ classification, reproduced supra, is required only for such of those activities, which fall under the category of ‘manufacture’. Whether the Assessee is required to obtain sanction/permission/code, so prescribed or not, is not in dispute. It is true that notice is only subjective satisfaction and not final opinion, but then the Assessing Officer has decided the objections, already expressing an opinion on the assessee’s entitlement for statutory deduction. The question is not whether the action taken is in good faith or not. What is important is that the Assessing Officer has exceeded its jurisdiction erroneously. Which, in our considered view, he has so done, rendering the action to be absolutely illegal and unsustainable in law. - Decided in favour of assessee.
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