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2018 (3) TMI 1580 - ITAT AGRAReopening of assessment - Held that:- Undisputedly, the assessment order was passed u/s 143(1), whereby the return of the assessee was only processed on 19.09.2006. While processing the return, obviously, no ‘opinion’ was formed by the AO as regarding the claims made in the return. Now, once per se, no opinion came to be formed at that time, the AO cannot be said to have initiated the reopening proceedings merely on a change of opinion. Claim of deduction u/s 80IB regarding sales of liquid milk on the proportionate profit - Held that:- Both the Authorities below have held that liquid milk is not a product of an industrial undertaking. This, in my considered opinion, is not justified. It remains undisputed that by virtue of the processing done on milk by the assessee, the milk gets pasteurized, thereby becoming free of bacteria, and thus, potable and consumable. Obviously, therefore, the quality and nature of the milk gets irreversibly altered by such processing. Thus, in this regard, the assessee is entitled to deduction u/s 80IB of the Act. AO is directed to grant exemption u/s 80IB as claimed by the assessee. Quantification of deduction u/s 80IB - whether such deduction is to be allowed on the amount arrived at before setting off the un-absorbed brought forward depreciation, or after setting off the un-absorbed brought forward depreciation- Held that:- the special deduction under Chapter VI-A of the IT Act has to be computed on the gross total income determined after deducting all deductions allowable under sections 30 to 43D of the Act; that the quantum of deduction allowable u/s 80 IA of the Act has to be determined by computing the gross total income from business, after taking into consideration all the deductions allowable under sections 30 to 43D of the Act; that the quantum of deduction under section 80IA has to be determined on the total income computed after deductions allowable under sections 30 to 43D of the Act; that the assessee’s claim of 100% deduction without taking into consideration depreciation which they wanted to utilize in the subsequent years, would be ana-thema to the scheme under section 80IA of the Act, which is linked to profit and if the contention of the assessee were to be accepted, it would allow them to inflate the profits-linked incentives provided under section 80IA of the Act, which could not be permitted; and that the provisions of section 80IB of the Act (which is under consideration herein), are in pari materia with those of section 80IA of the Act. See Plastiblends India Ltd case [2017 (10) TMI 423 - SUPREME COURT OF INDIA]
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