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2018 (1) TMI 709 - AT - Income TaxValidity of reopening of assessment - eligible reasons to believe - non specific reasons - Held that:- In the absence of proper recording of reasons that income chargeable to tax has escaped assessment by the reasons of failure on the part of the assessee to disclose fully and truly all necessary facts relevant to the assessment, reopening of assessment after 4 years is not a valid reopening and on the basis of the assessment framed consequent to the bad reopening, the assessment can be quashed. In the instant case, since the AO has not recorded the specific satisfaction that income chargeable to tax has escaped the assessment on account of failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment, the reopening is invalid. Therefore, the assessment framed consequent to the invalid reopening deserves to be quashed. - Decided in favour of assessee. Eligibility to claim u/s 10B - Held that:- The assessee is merely a (developer) or a collaborator for the Cornelius or its group and it has undertaken the services required by them for which the assesse was compensated and hence it’s business can be considered as a Research Collaborator “ rendering technical services” which is not within the scope of s. 10B . The Cornelius or its group own the entire property including the assessee’s output or it’s so called product etc as defined in the “Foreground Information, IPR” etc under clause 1.1. Thus, the assessee owns nothing which could be exported. When the assessee has not established that its output is an independent product or article or thing or computer software, it is owner of it, it has exported them and earned the impugned income, the questions whether it manufactured or produced articles or things or computer software, whether it exported them etc as required u/s10B is nowhere in the realm and hence its claim of deduction u/s 10B is not allowable - Decided against assessee.
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