TMI Blog2009 (12) TMI 724X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax Act. Notice for reassessment under section 147 was issued on March 27, 2008 and the reassessment was completed on July 10, 2008. Before the learned Commissioner of Income-tax (Appeals), the assessee, inter alia, appealed against the jurisdiction to reopen the assessment. The learned Commissioner of Income-tax (Appeals) noticed that the assessment in this case was issued after four years without pointing out any fault or failure on the part of the assessee. The learned Commissioner of Income-tax (Appeals) noted that the Assessing Officer was also given an opportunity to show the reason to indicate as to how there is no full and true disclosure on the part of the assessee. Thereafter the learned Commissioner of Income-tax (Appeals) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the proviso to section 147 is applicable, reassessment proceedings cannot be initiated unless there is a failure on the part of the assessee to make full and true disclosure of material facts. Such view has come out in the cases of Wel Intertrade P. Ltd. v. ITO [2009] 308 ITR 22 (Delhi) and Intercontinental Trading and Investment Co. Ltd. [2009] 165 Taxman 84 (Delhi) and CIT v. Eicher Ltd. [2007] 294 ITR 310 (Delhi) and several other cases. Therefore, following the settled principle of law it is held that the reopening of the case under section 148 in the instant case is not valid, hence the reassessment order stands quashed and this ground is allowed." Against this order, the Revenue is in appeal before us. We have heard both the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of the assessee to disclose fully and truly all material facts. In the present case we find that reason for reopening recorded as under: "The return of income was filed on October 31, 2001 declaring total income of Rs. 1,70,42,783. The assessment under section 143(3) of the Act dated March 24, 2003 was completed at the total income of Rs.1,80,80,973. The perusal of the records revealed that the assesseecompany has claimed deduction under section 80HHC even on the amount of profit of Rs. 17,11,322 allowed as deduction under section 80-IA of the Act, which is not allowable as per the provisions of section 80-IA(9). This resulted in excess deduction of Rs. 7,56,140 under section 80HHC." A reading of the above makes it clear that the reo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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