9911796707
TMI Blog2022 (2) TMI 596X X X X Extracts X X X X X X X X Extracts X X X X ..... der : 2.1) The petitioner is a company incorporated under the Companies Act, 1913. The petitioner is an investment holding company of Tata Group's Companies. For the assessment year 2003-04, the petitioner fled return of income on 28th November 2003 declaring total income of Rs. 10,53,46,561/-. Along with the Return, the petitioner had, inter-alia, annexed the income tax summary containing details of the computation of income under each head of income, the quantum of deduction claimed under sections 10A and 80HHE as well as the income from business, gross and net income. The petitioner had also annexed Audit Report, Director's Report and the Audited Accounts for the year ended 31st March 2003. 2.2) The petitioner's case was selected for scrutiny assessment. Multiple notices and questionnaires were served on the petitioner on a variety of issues, including the deductions claimed under section 10A, 80HHE and 80G, dis-allowance of interest etc. The petitioner claimed to have given explanations and furnished documents in support thereof. 2.3) On 21st March 2006, an assessment order was passed under section 143(3) determining a total income of Rs. 858,87,52,290/-. 2.4) Being aggriev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment under section 143(3) of the Act, 1961 but also, a further consideration at the level of CIT [A], and the assessment order was fnalized pursuant to the order of CIT [A], there was no justifiable reason to resort to the provisions contained in section 147 of the Act, 1961 as all the issues were considered threadbare not once but twice. 4. On 15th October 2012, Rule was issued. 5. An affidavit-in-reply was filed on behalf of respondent Nos.1 and 2. The respondent Nos.1 and 2 have endeavoured to justify the impugned action. It was specifically denied that the notice was issued after six years. Controverting the claim of the petitioner that the notice was dispatched on 3rd April 2010, and not on 31st March 2010 (which date the notice bears), the respondent No.1 sought to bank upon an extract of the dispatch register which indicates that the notice was dispatched on 31st March 2010 by EMS Speed Post, Churchgate Post Office. On merits, the respondents have contended that the reasons recorded by the Assessing Officer justify the invocation of the power contained in section 147 of the Act, 1961. 6. We have heard Mr.Pardiwalla, the learned Senior Counsel for the petitioner and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , an additional condition is required to be satisfied, namely, recording a satisfaction that the income has escaped assessment on account of failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment. Whether these jurisdictional conditions are satisfied, has to be ascertained from the reasons recorded by the Assessing Officer. The existence of reasons which propel the formation of belief that income has escaped assessment is further qualified by the fact that those reasons should be based on tangible material. A bald assertion by the Assessing Officer that he has reason to believe that income has escaped assessment un-substantiated by tangible material, is of no avail. 11. Moreover, the reasonable belief so recorded should not partake the character of a mere change in opinion in respect of the same material and facts, which were already considered at the time of original assessment. The reason is not far to seek. The power is of reassessment and not review. It is thus postulated that where the primary facts necessary for assessment are fully and truly disclosed and the Assessing Officer took a conclusive view thereon, it is impermi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that 10% of the eligible profits under section 10A were not fully taxed and yet, set off of the losses of local units to the extent of Rs. 54,27,79,336/- was allowed and this resulted in short levy of tax." Evidently, this assessment of the Assessing Officer betrays an intent to question the original assessment on the strength of very same material, by substituting his view for the conclusion recorded by the Assessing Officer at the time of initial assessment. 15. The alleged escapement of the income articulated under second head "Correct computation of Business Income" also suffers from the same vice of mere change of opinion. The third head under which the income allegedly escaped assessment, under the caption, 'Excess DIT Relief' stands on a much weaker foundation. The Assessing Officer explicitly refers to the availability of two options for computation of deduction under section 10A and 80 HHE, namely, (i) exclusive method; and (ii) alternatively, profit of 10A units shall form part of calculation of 80 HHE and export turnover of 10A is to be excluded therefrom. According to the Assessing Officer, the choice of the second method by the department resulted in escapement of in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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