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Issues involved:
Challenge to notice of reassessment u/s 148 of the Income Tax Act, 1961 for Assessment Year 2004-05 based on denial of deduction u/s 80IB. Summary: Issue 1: Reopening of assessment under Section 148: The petitioner challenged the notice of reassessment issued under Section 148 of the Income Tax Act, 1961, along with a proceeding notice dated 3rd October 2011 for completing reassessment proceedings. Details: The respondent Assessing Officer sought to reopen the assessment for AY 2004-05 under Section 147 of the Act, citing the insertion of an explanation under Section 80IB by the Finance Act of 2009. The reason for reopening was that the petitioner, a works contractor, was not entitled to the deduction under Section 80IB as claimed, as the income had escaped assessment. The petitioner objected to the notice, arguing it was a mere change of opinion by the Assessing Officer. Issue 2: Validity of reassessment notice: The petitioner contended that the notice of reassessment was invalid as it was based on a change of opinion and there was no failure to disclose material facts. Details: The petitioner had fully disclosed all material facts regarding the claim for deduction under Section 80IB during the original assessment. The assessment order had allowed the deduction after thorough scrutiny of documents and details provided by the petitioner. The reassessment was sought beyond the four-year period from the end of the relevant assessment year, solely based on a later amendment to the statute. The court held that there was no valid reason for assuming jurisdiction under Section 147, as there was no concealment on the part of the petitioner. Conclusion: The court allowed the petition, quashing the notices for reassessment as they were issued without a valid basis and contrary to the law. The judgment highlighted the importance of full disclosure of material facts and the invalidity of reopening assessments beyond the prescribed time limit without proper justification.
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