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2021 (4) TMI 70 - HC - Income TaxReopening of assessment u/s 147 - deduction under explanation 7 of section 80IB(10)(a) (iii) - HELD THAT:- As examined all the material facts as well as the reasons recorded for reopening of the assessment for the years under consideration. The impugned action on the part of the respondent to issue the impugned notices under Section 148 of the Act is without authority of law and therefore, the same are required to be quashed and set aside on the following reasons reasons recorded by the assessing officer led to belief about the escapement of assessment is nothing, but mere a change of opinion, which cannot sustainable in law. The issue of claim of deduction under Section 80IB(10) of the Act was thoroughly examined at the stage of original assessment by the assessing officer and had considered various details and consciously arrived at the conclusion not to disallow the deduction claimed by the assessee for the respective years under consideration. Even on the issue of commission paid to Mr. Baldevbhai Patel and cash deposit of ₹ 6,50,000/-, sufficient explanation was made by the assessee and accordingly, for the A.Y. 2011-12, the assessing officer did not add this amount for the purpose of tax. Therefore, it is presumed to have accepted the contention of the assessee even there was no express reference in the assessment order. Considering the facts of the present case, no any tangible material came in the hands of the assessing officer after concluded assessment and therefore, in absence of any tangible materials, the reassessment on the basis of change of opinion cannot be permissible. We have examined the materials on record, which show that, at the time of filing the return of income as well as during the course of original assessment proceedings, the assessee had disclosed all the material facts fully and truly and there was no false and untrue declaration on the part of the assessee with regard to approval of the project by the concerned authorities to avail the benefit of claim of deduction under Section 80IB (10) of the Act. We have no hesitation to hold that, there was no basis or jurisdiction for the assessing officer to form a belief that, any income of the assessee for the respective assessment years, had escaped assessment within the meaning of Section 147 of the Act and the reasons recorded could not have led to formation of any belief that, the income has escaped assessment within the meaning of the aforesaid provisions. Notice issued under section 148 of the Act are required to be quashed and set aside and accordingly the same are hereby quashed. - Decided in favour of assessee.
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