TMI Blog2013 (8) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... ur years from the end of relevant assessment year - Following decision of Gujarat Power Corporation Ltd. Vs. Assistant Commissioner of Income Tax [2012 (9) TMI 69 - Gujarat High Court] - Decided against Revenue. - TAX APPEAL NO. 154 of 2013 - - - Dated:- 1-4-2013 - AKIL KURESHI AND MS. SONIA GOKANI, JJ. For the Appellant : K.M. Parikh. ORDER:- PER : Akil Kureshi Revenue is in appeal against the judgement of the Income tax Appellate Tribunal dated 06.07.2012. Following question is presented for our consideration: "Whether, on the facts and in the circumstances of the case, the ITAT was right in quashing the reassessment on the ground that the Assessing Officer has reopened the assessment on the same material which we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed the entire amount of Rs. 84.85 lakh on account of advertising expenses to the DTA unit only. During the course of assessment proceedings for A.Y. 2003-04, it was found and held that the above mentioned expenses and depreciation in respect of the above assets are to be charged to the EOU also in order to compute the benefit u/s. 10B in the ratio of turnover of EOU and DTA because these expenses and these assets is relatable for the EOU also. As per submission of the assessee, the turnover of the EOU is approximately 1/5th of the total turnover during the A.Y. 2001-02 hence it is clearly that the assessee has claimed more benefits u/s. 10B than it is entitled to, by no claiming these expenses and depreciation in respect of its EOU. At ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccounts and the balance-sheet of the EOU claiming exemption under section 10B of the Act and to furnish the same along with the details of sales/purchases, other income and major expenses etc. In such letter it was conveyed that, in case of failure to supply such information, the Assessing Officer proposed to disallow the claim and considered the income as taxable income. In response to such communication, the assessee vide its letter dated 25.03.2004, furnished the details along with working of profit and loss accounts for the year under consideration for the EOU. Such details included allocation of common expenses along with the basis of allocation for the EOU. Complete break-up of the profit and loss account as per Schedule 6 of the Comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the Tribunal was perfectly justified in coming to the above noted conclusion. As already recorded, the Tribunal found that the claim of the assessee for exemption under section 10B of the Act was scrutinized by the Assessing Officer in detail in the original assessment. Pointed question with respect to allocation of the expenditure to the E.O.U and the D.T.A. unit was raised. Assessee supplied detailed materials justifying the allocation already made. In the final order of assessment, no additional expenditure was diverted to the assessee's E.O.U. In other words, the claim of exemption under section 10Bof the Act was not disturbed. Of course, this was done without giving detailed reasons for the same. However, in our opinion, this would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n exercise of powers under section 147 of the Act particularly after the amendments made with effect from 1.4.1989. Such tangible material need not be alien to the record. 41. The powers under section 147 of the Act are special powers and peculiar in nature where a quasi-judicial order previously passed after full hearing and which has otherwise become final is subject to reopening on certain grounds. Ordinarily, a judicial or quasi-judicial order is subject to appeal, revision or even review if statute so permits but not liable to be reopened by the same authority. Such powers are vested by the Legislature presumably in view of the highly complex nature of assessment proceedings involving large number of assessees concerning multipl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee would have no control whatsoever. Whether the Assessing Officer allows such a claim, rejects such a claim or partially allows and partially rejects the claim, are all options available with the Assessing Officer, over which the assessee beyond trying to persuade the Assessing Officer, would have no control whatsoever. Therefore, while framing the assessment, allowing the claim fully or partially, in what manner the assessment order should be framed, is totally beyond the control of the assessee. If the Assessing Officer, therefore, after scrutinizing the claim minutely during the assessment proceedings, does not reject such a claim, but chooses not to give any reasons for such a course of action that he adopts, it can hardly be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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