2000 (2) TMI 40 - HC - Income Tax

Summary

Issues involved: Challenge to notice u/s 148 of Income-tax Act for reopening assessment for AY 1994-95 based on claim for deduction u/s 80-IA.

Details of the Judgment:

1. Background and Initial Assessment:
- Petitioner, an individual running Biobasix Industrial Undertaking, filed return for AY 1994-95 with total income of Rs. 6.74 lakhs.
- Assessment order passed on May 20, 1996, granting deduction u/s 80-IA.

2. Disallowed Claim for AY 1995-96:
- Claim for deduction u/s 80-IA for AY 1995-96 disallowed based on survey findings.
- Appeal to Commissioner of Income-tax (Appeals) allowed on March 31, 1999.

3. Reasons for Reopening AY 1994-95:
- Decision to reopen assessment made prior to appeal for AY 1995-96.
- Allegations of fraudulent claim under section 80-IA due to lack of infrastructure at BIU.

4. Contentions and Legal Position:
- Petitioner's counsel argued against reopening based on change of opinion.
- Emphasized appellate authority's findings and past judgments on similar cases.

5. Assessment Reopening and Legal Precedents:
- Reasons for reopening indicated fraudulent deduction claim and lack of infrastructure at BIU.
- Citing legal precedents, court upheld Assessing Officer's reason to believe income escaped assessment.

6. Final Decision and Stay Application:
- Petition rejected, stay granted till March 22, 2000.
- Court emphasized material on record justifying reopening and allowed reliance on Commissioner's order for AY 1995-96 in reassessment proceedings.

7. Conclusion:
- Petition dismissed, no merit found in challenging the notice for reopening assessment.
- Stay granted for a limited period with no further extension allowed.