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2018 (12) TMI 1217 - HC - Income TaxReopening of assessment - disallowance of deduction u/s 80HHC - whether interest received from dealers for belated payments cannot be included in the business profits for the purpose of deduction under section 80HHC? - Held that:- As decided in case of JET AIRWAYS (I) LTD. [2010 (4) TMI 431 - HIGH COURT OF BOMBAY] the Legislature could not be presumed to have intended to give blanket powers to the Assessing Officer that on assuming jurisdiction under section 147 regarding assessment or reassessment of escaped income, he would keep on making roving inquiry and thereby including different items of income not connected or related with the reasons to believe, on the basis of which he assumed juris- diction. Further, it was held that for every new issue coming before the Assessing Officer during the course of proceedings of assessment or reassessment of escaped income, and which he intends to take into account, he would be required to issue a fresh notice under section 148 of the Act. Thus, it was held that the Assessing Officer had jurisdiction to reassess the income other than the income in respect of which the proceedings under section 147 were initiated, but, he was not justified in doing so when the reasons for the initiation of those proceedings ceased to survive. Therefore, the argument advanced by the Revenue placing reliance on Explanation 3 to section 147 is of little avail. Reopening of the assessment itself was bad in law, we may not be required to decide other issue as to whether the finding of the Assessing Officer with regard to computation of eligible profits for the purpose of section 80HHC of the Act was correct or not. We are convinced that reopening of the assessment on the said ground itself was unsustainable for the reason that in the scrutiny assessment under section 143(3) of the Act, this very issue, namely, regarding deduction under section 80HHC was considered by the Assessing Officer and a detailed working had been done and the tax pay- able was calculated. Therefore, if the Assessing Officer is to reopen the finding rendered in the scrutiny assessment, then it would clearly amount to change of opinion, which is impermissible. - Decided in favour of assessee.
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