TMI Blog2002 (1) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... earing on behalf of the petitioner are as follows: The assessments for the assessment years were all completed under section 143(3) of the said Act and the petitioner disclosed fully and truly all material facts necessary for the said assessments. The said assessments have become final after the disposal of the said appeals by the final appellate authority under the said Act. He further contended that there is no omission or failure on the part of the petitioner to disclose fully and truly all material facts necessary for the assessments and therefore all the impugned notices under section 148 of the said Act are illegal, invalid and without jurisdiction. It is further contended that it is the case of the respondents that in the original orders of assessment for the said assessment years reliefs, inter alia, under section 32A as claimed, were allowed in full for the assessment years up to 1987-88 and under section 32AB for the assessment years 1988-89 and 1989-90. The petitioner's claim for relief under section 80HH and 80HHB was also allowed in the assessment order for the assessment year 1984-85 but the claim for reliefs under section 80HHB for the assessment years 1985-86, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on a judgment reported in CIT v. N.C. Budharaja and Company [1993] 204 ITR 412 (SC), in their affidavits. The said judgment has no application, according to him, in view of the fact that the Supreme Court delivered the said judgment on September 7, 1993, after completion of the assessment of the petitioners for the said assessment years. He further relied upon the judgments reported in Calcutta Discount Co. Ltd. v. ITO [1961] 41 ITR 191 (SC) and Indra Co. Ltd. v. ITO [1971] 80 ITR 559 (Cal), and contended that once all the primary facts are before the assessing authority, he requires no further assistance by way of disclosure. It is for the assessing authority to decide what inferences of facts can be reasonably drawn and what legal inferences have ultimately to be drawn and in the case of Calcutta Discount Co. Ltd. [1961] 41 ITR 191 (SC). The Supreme Court held that the condition precedent to the exercise of jurisdiction did not exist. He further contended that respondent No.1 has acted on a mere change of opinion in view of the judgment of the Supreme Court in the case of N.C. Budharaja and Co. [1993] 204 ITR 412. He further contended that the sanction was granted by responden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 92 175,52,386 41,37,597 32,60,170 1,54,619 ------------------------------------------------------------------------- He further drew my attention to the judgment of the apex court in the case of N.C. Budharaja and Co. [1993] 204 ITR 412, where the Supreme Court has held that an "article" or "things" used in sections 32A, 32AB and 80HH refers only to movable assets and the words "manufacture or construction of an article" cannot be extended to construction of road, building, dam or bridge, etc. Since the petitioner was engaged in civil construction works on contract basis, there was no activity of the nature of production or manufacture of any article or thing within the meaning of either section 32A, 32AB or 80HH of the said Act. He further contended that the said ratio was also reaffirmed by the apex court in the case of Builders Associations of India v. Union of India [1994] 209 ITR 877. According to him, the benefit of deduction granted to the writ petitioner under the said sections was not legally admissible and was allowed erroneously. Accordingly, respondent No.1 formed a reasonable belief that income to the extent of the said reliefs under the said provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter alia, are as follows: "After the Supreme Court's decision in the case of CIT v. N.C. Budharaja and Co. [1993] 204 ITR 412, which has become law and the Supreme Court has also reversed the decision of the Bombay High Court in the case of CIT v. Pressure Piling Co. (India) P. Ltd. [1980] 126 ITR 333. The above mentioned Supreme Court decision is fairly applicable in this case also and, therefore, it is held that the job undertaken by the assessee-company cannot be termed as that done by an industrial undertaking as it is not manufacturing any article or thing. Once it is not an industrial undertaking it is not eligible for deductions under the above mentioned section." He also drew my attention to the reasons recorded and which were enclosed. He further relied upon the judgments reported in the case of Raymond Woollen Mills Limited v. ITO [1999] 236 ITR 34 (SC) and the case of Mahanagar Telephone Nigam Limited v. Chairman, CBDT [2000] 246 ITR 173 (Delhi), and contended that the scope and effect of section 147 as substituted with effect from April 1, 1989, as also sections 148 to 152 are substantially different from the earlier provisions as they stood prior to such substitut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notices impugned in the said writ petition are valid proper and in accordance with the law laid down by the Supreme Court in the case of N.C. Budharaja and Co. [1993] 204 ITR 412 and in the case of Builders Associations of India [1994] 209 ITR 877 (SC). He further contended that the writ petition has got no merit and is liable to be dismissed and the Depart ment may be allowed to proceed to reassess the income which has escaped assessment in terms of and/or in pursuance of the said notices impugned in the writ petition. After considering the facts and circumstances of this case, in my opinion, I do not have any hesitation to accept the contention of learned counsel appearing on behalf of the Revenue and, in my opinion, the respondent-authorities have taken steps in accordance with the provisions laid down in the said Act. In my opinion, the Commissioner has duly applied his mind and after becoming satisfied the said sanction order was issued by him. If further appears that the Supreme Court has expressed its views in the case of N.C. Budharaja and Co. [1993] 204 ITR 412 and reaffirmed the said view in the case of Builders Associations of India [1994] 209 ITR 877 (SC). I do not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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