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2012 (9) TMI 282 - ITAT, CHANDIGARHValidity of reopening of assessment - alleged excessive deduction u/s 80IA on ground of deliberately reporting of higher profits, suppression of expenses, insufficient Plant & machinery for huge production - Held that:- AO has led no evidence whatsoever to either allege or establish that the expenses incurred were insufficient to carry out the manufacturing process. He has also led no material to assume that net profit declared was exceptionally high rate of profit. There is also no material to allege that P&M was insufficient to carry out the manufacturing process. AO has thus not relied upon any material or evidence, which could enable him to assume that income of the assessee, has escaped assessment either by understatement or expenses or overstatement of profits. He has merely proceeded on surmises, conjectures and suspicion to observe that income of the assessee has escaped assessment which in law cannot constitute a reason to believe for invoking section 147. Entire reassessment proceedings are therefore, found to be null and void and on this basis the assessment order is liable to be quashed - Decided in favor of assessee.
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