TMI Blog2022 (4) TMI 1235X X X X Extracts X X X X X X X X Extracts X X X X ..... er had received another notice dated 8th November 2017 under Section 142(1) of the Act calling upon petitioner to justify the claim of the deduction under Section 80-IC in respect of two units wherein the claim of deduction has been revised to 100% with supporting evidences. Petitioner has provided those details. In the assessment order, Mr. Sharma submitted that, there is no specific discussion regarding the 100% deduction claimed for the two units. In our view, that would not help Mr. Sharma because it is settled law that once a query is raised during the assessment proceedings and the assessee has replied to it, it follows that the query raised was a subject of consideration of the Assessing Officer while completing the assessment. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Pradesh for manufacturing of adhesives. Out of the six undertakings, one is situated in District Sirmaur (hereinafter referred to as K-1 Unit) and another at District Solan (hereinafter referred to as Baddi 3 Unit or B-3 Unit). 2. It is petitioner s case that in terms of Section 80-IC(8)(ix) of the Income Tax Act, 1961 (the Act) petitioner was entitled to claim 100% deduction of its profit derived from the said K-1 Unit for five assessment years from Assessment Year 2012-2013. For B-3 Unit as well, it is petitioner s case that they were entitled to the same 100% deduction of its profits. 3. Petitioner filed its return of income for Assessment Year 2014- 2015 and an assessment order under Section 143(3) read with Section 144C of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the said judgment has been delivered by the Apex Court on 20th February 2019, whereas the approval under Section 151 of the Act has been granted only on 26th March 2021. Therefore, the Assessing Officer ought not to have relied upon the judgment referred to in the reasons. Mr. Shah further submitted that this was even brought to the notice of the Assessing Officer in the objections filed by petitioner and in the order disposing the objections, the Assessing Officer has conveniently ignored to deal with the said objection. Mr. Shah submitted that in the affidavit in reply, though it is not denied that the judgment has been overruled, respondents have conveniently stated that the Officer cannot be expected to know all the judgments. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a bald allegation to escape the restrictions imposed by the proviso to Section 147 of the Act. Infact in our view, there has been no failure whatsoever on the issue of Section 80-IC (3) of the Act. The deductions have been first of all explained in the documents filed alongwith the return of income. Moreover, during the assessment proceedings, a notice dated 6th June 2016 under Section 142(1) of the Act was issued to petitioner calling upon petitioner to furnish reasons for revising the income if the return has been revised. In its reply dated 30th June 2016, petitioner has given the reason for revising its income and has expressly stated that the deduction that it claimed under Section 80-IC for the two eligible units was inadvertently cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clear that the issue of deductions claimed by petitioner under Section 80-IC of the Act was under active consideration of the Assessing Officer during the assessment proceedings. The fact that queries were raised and answers were given also indicate that there is no failure on the part of petitioner to truly and fully disclose material facts. 11. In the circumstances, we have to allow the petition in terms of prayer clause (a), which we hereby do. Prayer clause (a) reads as under : (a) that this Hon ble Court be pleased to issue a Writ of Certiorari or any other writ order or direction under Article 226 of the Constitution of India calling for the records of the case leading to the issue of the impugned notice and passing of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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