9911796707
TMI Blog2021 (9) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... ave reasons to believe that petitioner's income chargeable to tax has escaped assessment with the meaning of Section 147 of the said Act. Petitioner is also impugning the order dated 16th September 2019 rejecting the objections raised by petitioner in response to the notice dated 29th March 2019. 2. Petitioner is engaged in the business of contact centre and transaction processing services. During the previous year relevant to the assessment year 2012-13, petitioner had operations from two units located in the Special Economic Zone (SEZ) viz. Pritech unit and Airoli unit. Pritech unit made profit, which was eligible for deduction under Section 10AA of the said Act, whereas Airoli unit though eligible for deduction, had a loss. Petitioner f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final assessment order in appeal before the Income Tax Assessment Tribunal (ITAT). This appeal was decided in favour of petitioner and by this order the ITAT, in effect, accepted the return as revised and filed by petitioner. 5. Thereafter, petitioner received from respondent no. 1 a letter dated 26th August 2019 giving reasons recorded under Section 148 (2) of the Act for reopening the assessment for assessment year 2012-13. Petitioner vide its letter dated 9th September 2019 filed its objections challenging the validity of the reassessment proceedings. The objections were rejected and respondent no.1 passed its order dated 16th September 2019. Reassessment is on the ground that the set off of Rs. 94,22,03,318/- which is a short term cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim of deduction u/s 10A/10B/10AA. Thereafter, deduction of (Rs. 48,13,86,995/-) was allowed, which is not correct as I.T. Act 1961. 3. The CBDT issued circular No. 7 of 2013 to clarify the method of computation of computation of deduction allowable under Section 10A, 10B and 10AA of the Act. Section 10A of the Act states that where the gross total income of an assessee includes any profits and gains derived by an undertaking or an enterprise from any eligible business, a deduction shall be allowed in computing total income of the assessee of an amount equal to hundred percent of the profits and gains derived from such business for ten consecutive assessment years. 4. Therefore, it is obvious from the above computation that that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 147 of the Income Tax Act for the A. Y. 2012-13. Further this escapement of income is by reasons of the failure on the part of the assessee to disclose full and truly, all material facts necessary for its assessment for A. Y. 2012-13. In this case more than four years have lapsed from the end of assessment year under consideration. Hence necessary sanction to issue the notice u/s 148 has been obtained separately from Pr CIT-12, Mumbai as per provisions of Section 151 of the Act. (ARABINDA BISWAS) ACIT-12(2)(1), Mumbai" Date: 25.03.2019 6. Mr. Sheth submitted that the assessing officer can reopen an assessment after four years under Section 148 (2) of the said Act only if any income chargeable to tax has escaped assessment f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons for reopening an assessment has to be tested/examined only on the basis of the reasons recorded at the time of issuing a notice under Section 148 of the said Act seeking to reopen an assessment. These reasons cannot be improved upon and/or supplemented much less substituted by affidavit and/or oral submissions. In the reasons to believe, except for a general statement that the escapement of income is by a reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment, there is no mention anywhere that the assessee did not disclose that the deduction under Section 10A was allowed on capital gain during the course of assessment proceedings under Section 143(3) of the Act or th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... :- "147. Income escaping assessment.- ...... Provided that where an assessment under sub-section (3) of section 143 or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year: ......." (emphasis supplied) 11. Therefore, when the assessment is sou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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