2007 (6) TMI 246 - AT - Income Tax

Summary

Issues involved:
The judgment involves challenges related to invoking provisions of reassessment u/s 147 based on a Supreme Court decision, denial of deduction u/s 80-IA, charging of interest u/s 234B, and admission of additional ground for exemption of sales tax.

Asst. yr. 1997-98:
The AO initiated reassessment proceedings based on a Supreme Court decision affecting deduction u/s 80-IA, which was upheld by the CIT(A). The assessee contended the initiation was invalid citing a recent High Court judgment. The Tribunal found the AO's reliance on the Supreme Court decision unfounded due to a subsequent High Court judgment, quashing the reassessment proceedings.

Asst. yr. 1998-99, 1999-2000, 2001-02:
Similar to 1997-98, reassessment notices were issued based on the same Supreme Court decision. Following the precedent set in the earlier year, the Tribunal quashed the notices for these years as well.

Asst. yr. 2000-01:
Reassessment notice was issued based on the same Supreme Court decision and also on the eligibility of deductions u/s 80-IA and 80HHC. The Tribunal quashed the notice as the AO's grounds were found unsustainable, citing a Tribunal decision supporting the assessee's eligibility for deduction u/s 80HHC.

In conclusion, the Tribunal consistently quashed reassessment notices for multiple years due to invalid grounds and unsustainable arguments by the AO, ensuring fair treatment and adherence to legal precedents.