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2017 (8) TMI 245 - HC - Income TaxReopening of assessment - retrospective effect on amendment to provisions of Section 115JB - Held that - The assessment was completed on 22.02.2006. The reassessment under Section 143(3) r/w Section 147 was completed on 26.12.2008. The claim of the assessee was allowed in the original assessment and the decision of the Assessing Officer was supported by various judicial pronouncements. The Tribunal relied upon the judgment of this Court in case of Rallis India (2010 (3) TMI 164 - BOMBAY HIGH COURT) to state that retrospective amendment could not have been the sole ground for reopening of the assessment. Clause (i) of the Explanation I to Section 115JB of the Act was brought into force by Finance Act, 2009 with retrospective effect from 01.04.2001. The probable view was taken by the Assessing Officer. It is observed that the judgment of this Court in case of Rallis India (supra) would apply to the present case also. No substantial question of law
Issues:
Reopening of assessment under Section 143(3) for Assessment Year 2003-04 based on a silent original assessment order and the applicability of retrospective amendment to Section 115JB of the Act. Analysis: The appellant argued that the reopening of the assessment is permissible when the original assessment order is silent on the issue for which the reassessment notice is issued. The appellant distinguished the case of Rallis India Ltd. by stating that the Assessing Officer did not seek details on the provision for diminution in asset value or raise queries regarding its addition to net profit under Section 115JB of the Act. The reassessment was completed within four years of the original assessment. Upon reviewing the Tribunal's judgment and timeline, it was noted that the original assessment allowed the assessee's claim, supported by judicial pronouncements. The Tribunal referenced the Rallis India case to highlight that a retrospective amendment alone cannot be the basis for reopening an assessment. The retrospective effect of Clause (i) of Explanation I to Section 115JB brought by the Finance Act, 2009 from 01.04.2001 was discussed. The High Court observed that the Assessing Officer took a probable view, and the principles established in the Rallis India case were deemed applicable to the present scenario. Consequently, it was concluded that no substantial question of law arose, leading to the dismissal of the appeal without any costs.
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