2012 (3) TMI 548 - HC - Income Tax

Summary

Issues involved: Validity of notice dated 28 March 2007 for reopening assessment under Section 148 of the Income Tax Act, 1961 for Assessment Year 200001.

Summary:
The petition challenged the validity of a notice dated 28 March 2007 seeking to reopen the assessment for Assessment Year 200001 under Section 148 of the Income Tax Act, 1961. The grounds for reopening the assessment were related to the denial of deduction u/s. 80IA during scrutiny proceedings for A.Y. 200405. The petitioner obtained an interim order restraining the Revenue from further proceedings. The basis for reopening the assessment was the denial of Section 80IA benefit to the Assessee during scrutiny proceedings for A.Y. 200405. However, the Income Tax Appellate Tribunal ruled in favor of the Assessee, confirming that the Assessee was engaged in manufacturing activity of producing Perfumed Hair Oil. The Division Bench upheld the Tribunal's decision, stating that the Assessee was entitled to avail deduction under Section 80IB. The same principles applicable to Section 80IB were deemed to apply to Section 80IA. As the proceedings for A.Y. 200405 had attained finality, the basis for reopening the assessment was deemed invalid. Consequently, the notice under Section 148 dated 28 March 2007 was quashed and set aside.

End of Summary