2010 (6) TMI 884 - AT - Income Tax

Summary

Issues involved: Reassessment under section 147 of the Income Tax Act, 1961 for the assessment year 1999-2000.

Summary:
The appeal was filed against the order of the CIT (A)-II, Hyderabad dated 25-10-2005. The grounds raised by the assessee included challenges to the reduction of claims under sections 80HHC and 80IA, failure to apply CBDT Circular No.621, and not following a decision of the ITAT, B-Bench, Bangalore. The assessee, a public limited company in the pharmaceutical business, had its original assessment completed under section 143(3) of the Act. Disputes arose regarding deductions under sections 80HHC and 80IA, leading to a reassessment under section 147. The CIT (A)-II, Hyderabad partially allowed the appeal, confirming the restriction on deductions under section 80HHC in line with section 80IA(9) of the Act. The assessee appealed further.

The counsel for the assessee argued that the reassessment was a mere change of opinion without fresh material, and the deductions claimed were within limits. The Departmental Representative contended that the reassessment was valid as the issue of reducing deductions under section 80IA was not addressed in the original assessment. The Tribunal found merit in the Departmental Representative's arguments, upholding the reassessment under section 147. Referring to the decision in Hindustan Mint and Agro Products Pvt. Limited, the Tribunal emphasized preventing repetitive deductions on the same profit under different provisions. The matter was directed back to the assessing officer for verification in line with the Special Bench ruling.

In conclusion, the appeal of the assessee was treated as allowed for statistical purposes. The order was pronounced on 30-6-2010.