TMI Blog2014 (3) TMI 220X X X X Extracts X X X X X X X X Extracts X X X X ..... 013 (1) TMI 517 - BOMBAY HIGH COURT] - reopening of an assessment is permissible when the original assessment order passed under Section 143(3) of the Act is silent in respect of the issue/point on which reassessment notice is issued - Non receipt of convertible foreign exchange within a period of 6 months from the end of the assessment year was not the subject matter of consideration nor the fact that the petitioner had declared its book profits after reducing the amount of deductions under Section 10AA of the Act during the original proceedings. It is permissible for the Assessing Officer to have a reasonable belief that income chargeable to tax has escaped assessment and the same does not stem from a change of opinion - only a prima f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lacs. Thereafter on 18 May 2010 the Assessing Officer passed an assessment order under Section 143(3) of the Act assessing the petitioner's income at Rs.39.35 lacs. This was after granting benefit of deduction under Section 10AA of the Act to the extent of Rs.28.74 crores in respect of its income under the head Profit and Gains of Business or Profession. 5) On 25 March 2013, the Assessing Officer issued a notice under Section 148 the Act to the Petitioner seeking to reopen the assessment for assessment year 2008-09. The reopening was sought on the ground that the Assessing Officer has reason to believe that the income chargeable to tax has escaped assessment. On petitioner's application the Assessing Officer furnished to the pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. Thus, there is an excess allowance of deduction of Rs.3,36,63,661/-, resulting into escapement of income to that extent. Therefore, I have reason to believe that income of Rs.3,36,63,661/chargeable to tax has escaped assessment within the meaning of sub clause (iii) of clause below Explanation (2) of Section 147 of the Act. 3. Further, as per Form No.29B, the book profit has been shown at Rs. NIL after reducing by the amount of profits of 10AA unit. However, as per the amended provision with effect from A.Y. 200809, the amount of income as per section 10A/10B will not been reduced while computing the book profit. It is further observed that the clause 12 13 of Form No.29B was not calculated correctly with reference to the figures ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thdrawn. 7) By an order dated 12 November 2013, the Assessing Officer rejected the petitioner's objection to the reasons for reopening of assessment for assessment year 2008-09. It was noted that the objections raised are on merits of the matter and the same would be considered on the basis of documents and evidence produced during the reassessment proceeding. 8) Mr. Parida, learned Counsel for the petitioner in support of the petition submits that the reopening is only in view of change of opinion and therefore beyond jurisdiction. It was pointed out that the petitioner is entitled to the benefit of Section 10AA of the Act as the claim for the same had been filed with the Assessing Officer along with petitioner's return of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levant assessment year. In these circumstances, even if there has been full and true disclosure of all material particulars done by the assessee, revenue is not prohibited from reopening an assessment in case there a reasonable belief that income chargeable to tax has escaped assessment. It is further submitted that the grounds on which the reassessment is being sought to be done, were not a subject matter of examination during the original proceeding leading to the assessment order dated 18 May 2010 for assessment year 2008-09. In view of the above no interference is called for by this Court. 10) We have considered the rival submissions. We find that, in this case, there has been a full and true disclosure of all relevant material neces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly his mind to the tangible material to form any opinion with regard to it during the original assessment proceeding. It has been held by this Court in Export Credit Guarantee Corporation India Ltd. vs. Additional CIT 350 ITR 651 that reopening of an assessment is permissible when the original assessment order passed under Section 143(3) of the Act is silent in respect of the issue/point on which reassessment notice is issued. Further, no query with regard to the above issue having been made during the assessment proceeding would also indicate absence of application of mind to the tangible material. 12) In this case non receipt of convertible foreign exchange within a period of 6 months from the end of the assessment year was not the sub ..... X X X X Extracts X X X X X X X X Extracts X X X X
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