2016 (12) TMI 1557 - HC - Income Tax

Validity of reopening of assessment - assessee while claiming the deduction u/s 80IA did not submit separate Profit & Loss Account and balance sheet of the undertaking, therefore,AO ought not to have allowed deduction - Held that - Division Bench of this Court in the case of Sabarkantha District Co-operative Milk Producers Union Ltd. (2014 (6) TMI 977 - GUJARAT HIGH COURT)has held that deduction under Section 80IA Income Tax Act cannot be denied solely on the ground that separate Profit & Loss Account and balance sheet are not produced, if otherwise the petitioner assessee is entitled to deduction under Section 80IA of the Income Tax Act. In that view of the matter on the very ground /reasons, but with respect to another assessment year now it is not open for the Assessing Officer to reopen the assessment for the Assessment Year 2010-11 on the ground that the petitioner assessee did not submit separate Profit & Loss Account and the balance sheet while claiming deduction under Section 80IA of the Income Tax Act. The Assessing Officer was not justified in allowing the deduction under Section 80IA of the Income Tax Act to the extent of ₹ 45,54,649/- The aforesaid issue is now concluded by the Division Bench of this Court, and therefore, on the aforesaid ground /reasons, the Assessing Officer is not justified in reopening the assessment for the Assessment Year 2010-11 that too beyond four years. - Decided in favour of assessee

Summary

Issues Involved:
1. Challenge to the reopening of assessment under Section 148 of the Income Tax Act for the Assessment Year 2010-11 beyond the four-year period.

Analysis:
The petitioner sought to quash the notice under Section 148 of the Income Tax Act, which aimed to reopen the assessment for the Assessment Year 2010-11, claiming that the Assessing Officer disallowed a portion of the deduction under Section 80IA. The petitioner argued that the deduction was wrongly allowed despite not submitting separate Profit & Loss Account and balance sheet. However, the petitioner highlighted a similar benefit granted for the Assessment Year 2012-13 without the separate documents, which was later revised under Section 263 of the Income Tax Act. The petitioner emphasized a precedent where the Division Bench held that the deduction under Section 80IA cannot be denied solely based on the absence of separate documents if the petitioner is entitled to the deduction. The petitioner contended that the assessment for the year 2010-11 should not be reopened based on the same grounds as the previous year's assessment. The court noted that the issue was already decided by the Division Bench for a similar case, and the Assessing Officer was not justified in reopening the assessment for 2010-11 beyond the four-year limit. Consequently, the court quashed the reassessment proceedings and the notice under Section 148 for the Assessment Year 2010-11.

This detailed analysis of the judgment provides a comprehensive understanding of the legal issues involved and the court's decision regarding the challenge to the reopening of the assessment under the Income Tax Act.