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TMI Blog2005 (2) TMI 766X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the reassessment proceedings under section 143(3) read with section 147 of the Act despite the fact that the Explanation 1 below the proviso to section 147 is applicable to the facts of the case of the assessee." 3. In respect of assessment year 1996-97, the assessment was framed under section 143(3) vide order dated 30th March, 1999. The assessment was reopened vide notice issued on 15th April, 2002 and reassessment was framed on 12-11-2003. The assessee vide letter dated 6-6-2002 requested the Assessing Officer to provide the reasons for reopening the assessment. It was intimated that in the original assessment while computing deduc-tion under sections 80HH and 80-I, the Assessing Officer considered the income from sale of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) has held that reassessment proceedings were not valid as they were time-barred. The relevant observations of the CIT(A) are contained in para 2.5 to para 3 of his appellate order. For the sake of convenience relevant observations of CIT(A) are reproduced below: "2.5 During hearings, the record was perused and the DCIT also attended the hearing. The facts as stated by the appellant were found to be correct inasmuch as the period of four years has elapsed prior to issue of notice. Secondly, the issue of deduction under sections 80HH, 80-I and 80HHC had been discussed in the original assessment order prior to allowance of amounts claimed. The figure utilized in the reassessment and details required were part of the assessment record d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extend the time-limit to cover any general Supreme Court order but applies only to specific cases where any appellate order etc. has been received. Reassessment due to Supreme Court decisions is subject to the time-limits prescribed. I would, therefore, hold there appears to be no justification for taking action under section 147 in this case. In a recent decision of the Bombay High Court in the case of Grindwell Norton Ltd. v. CIT 267 ITR 673 it was held that there was no failure to disclose material facts and hence reopening beyond the period of four years was not valid. Hence in the present case also, similar view is held and the assessment is cancelled. 3. As the order itself stands cancelled, the other grounds of appeal do not ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s claimed by the assessee on the income on which the deduction was not available, according to the decision of Hon ble Supreme Court. Therefore, the assessee discolored and mis-projected the facts while it made claim in respect of income which cannot be considered eligible for deduction under sections 80HH, 80-I and 80HHC. He contended that the assessee also retained the due tax, therefore, also the assessment was validly reopened. 7. We have carefully considered the rival submissions in the light of material placed before us. Certain incomes were considered eligible for deductions under sections 80HH, 80-I and 80HHC by the department in the original assessment proceedings. Later on due to declaration of law by Hon ble Supreme Court, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the end of relevant assessment year, unless any income chargeable to tax has escaped for such assessment year by reason of failure on the part of assessee to disclose fully and truly all material facts, necessary for his assessment for that assessment year. 8. Undisputedly the reassessment proceedings in the present case, have been initiated beyond the period prescribed in the proviso. The proviso put specific restrictions on initiation of reassessment proceedings where there is no failure on the part of assessee to disclose fully and truly all necessary facts for assessment. It has been specifically found by ld. CIT(A) that the issue of deductions under sections 80HH, 80-I and 80HHC had been discussed in the original assessment order p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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