TMI Blog2023 (12) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... ttedly, the notice u/s 148 of the Act was issued to the assessee on 03.03.2015 which is beyond the period of 4 years from the end of the relevant assessment year. Hence, the proviso to section 147 of the Act would come into operation. As per the said proviso, the ld AO is bound to duly mention the failure on the part of the assessee to make full and true disclosure of all material facts relevant for the purpose of assessment. We find that this issue is no longer res integra in view of the decision of Hindustan Lever Ltd Vs. R. B. Wadkar 2004 (2) TMI 41 - BOMBAY HIGH COURT] Reasons are the manifestation of mind of the Assessing Officer. The reasons recorded should be self-explanatory and should not keep the assessee guessing for the reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grounds of appeal :- 1. Whether on the facts and circumstances of the case and in law, the ld CIT(A) erred in allowing exemption u/s 10B to the assessee although the assessee has not carried out any manufacturing activity. 3. The assessee has raised the following grounds in cross objection:- 1. The CIT (Appeal) erred in law and on facts in not adjudicating the grounds taken regarding reopening of the assessment by issuing notice u/s 148 of the Act ignoring that a) the conditions laid down by law for issuance of notice u/s 148 have not been complied with; b) the notice u/s 148 was issued solely on the basis of audit objection without application of mind by the AO and even when he was in disagreement; c) the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he revenue was ultimately heard on 03.05.2023 and disposed of on the same date by recalling the order passed by this tribunal. Immediately the assessee has preferred cross objection before this tribunal on 09.05.2023. Hence, we hold that there is no delay at all on the part of the assessee in preferring cross objection before us. Accordingly, the cross objection filed by the assessee is hereby admitted and taken up for adjudication. 5. We have heard the rival submissions and perused the materials available on record. We find that the assessee in its cross objection has challenged the validity of assumption of jurisdiction u/s 147 of the Act by the ld AO on various facets. The original return of income was filed by the assessee u/s 139(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purview of deduction Subsequently, it has been observed that out of the total purchases of Rs. 4,68,47,462/-, purchases amounting to Rs. 3,08,67,880/- were made on 'H' form of Central Sales Tax which is called penultimate sale. It is a pre-condition for issue of H form to the seller that same goods which are sold in penultimate sale should be exported ie the goods sold by the exporter must be the same as have been acquired by him from his penultimate supplier. Thus, the purchaser cannot perform manufacturing process on the goods so purchased it it is issuing form 'H' to the seller Whereas for claiming deduction u/s 10B of the Act, the undertaking must have produce or manufacture article or things along with other condi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B. Wadkar reported in 268 ITR 332 (Bom). The relevant operative part of the said order is reproduced herein:- 20. The reasons recorded by the Assessing Officer nowhere state that there was failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment of that assessment year. It is needless to mention that the reasons are required to be read as they were recorded by the Assessing Officer. No substitution or deletion is permissible. No additions can be made to those reasons. No inference can be allowed to be drawn based on reasons not recorded. It is for the Assessing Officer to disclose and open his mind through reasons recorded by him. He has to speak through his reasons. It is for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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