TaxTMI 
TaxTMI 
2011 (1) TMI 1105
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....pening the assessment of the petitioner for the assessment year 2005-06. 3. The petitioner, a company is engaged in the business of consultancy and advisory, broking, etc., as well as in the generation of electricity with the help of renewable sources, and more particularly wind. For the assessment year 2005-06, the petitioner filed its return of income under section 139(1) of the Act accompanied by a statement of total income, annual audited accounts and audit report obtained under section 44AB of the Act. The income declared by the petitioner as per the regular provisions of the Act was Rs. 1,57,073. However, since the tax payable on the said income was less than 7.5 per cent. of the book profit as defined in section 115JB of the ....
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.... to the reasons recorded it is pointed out that even as per the reasons recorded, the tax effect as computed by the Assessing Officer aggregates to Rs. 4,05,930 which is less than the tax to which the petitioner has been assessed under section 115JB of the Act to submit that, in fact, there is no escapement of income and as such, the formation of belief as regards escapement of income is without any basis. It is, accordingly urged that on this ground alone, the impugned notice is required to be quashed and set aside. 5. Submissions on other aspects of the reopening have also been made by the learned advocate for the petitioner, inter alia, contending that the reopening is based on a mere change of opinion ; the material on the basis....
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.... the said amount to the amount computed under the ordinary provisions of the Income-tax Act, the aggregate amount even as per the Assessing Officer comes to Rs. 4,05,930 which is less than the amount of tax paid by the petitioner on being assessed under section 115JB of the Act. In the circumstances, when the tax payable as per the reasons recorded is less than the tax paid by the petitioner under the assessment framed under section 143(3) of the Act, the question of any income having escaped assessment does not arise. The order recording reasons itself indicates that in fact no income has escaped assessment and as such there is no basis for the formation of belief that income has escaped assessment. In the circumstances, the basic pre-cond....