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TMI Blog2012 (6) TMI 434X X X X Extracts X X X X X X X X Extracts X X X X ..... ceed with the said reassessment proceedings. 2. Thereafter, this writ was filed which now comes up for final determi- nation. There is an interim order dated February 24, 2006, restraining the Revenue from proceeding with such assessment. 3. The whole question in this writ application revolves around the inter- pretation to be given to section 80-IB(5) of the Act read with sub-section (2) defining an industrial undertaking. This section of the Act provides for specified deduction from the profits of an industrial undertaking situated in an industrially backward district as notified by the Central Government, while computing its income. Industrial undertaking is to be taken accord- ing to the statute as one which is engaged i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld by the Assessing Officers in making the earlier assessments which have become final and conclusive or opinion held in those assessment years where returns have been filed and no assessments had been made. Therefore, just because there was a change of opinion of one officer regarding the status of the writ petitioner-assessee as a manufacturer the proceedings could not be reopened. As such they are invalid and should be so declared by this court. 6. On the other hand, Mr. R. K. Chowdhury, learned advocate appearing for the Revenue, submitted that this question whether the assessee was entitled to deduction under section 80-IB was never considered by the income-tax authority. The question whether they are in fact manufacturers of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that each and every assessment which has not been made or wrongly made cannot be treated as an "escaped assessment" so as to enable the Revenue to enlarge the period of limitation for limitation. One limitation upon the Revenue is that it cannot reopen assessment on the basis of a change of opinion. It has been held by the Supreme Court in CIT v. Kelvinator of India Ltd. reported in [2010] 320 ITR 561 (SC) that despite amendment of section 147 with effect from April 1, 1989, mere change of opinion will not be enough to reopen the assessment. This decision has been cited by the learned counsel for the petitioner. Of course, this decision has to be read with Asst. CIT v. Rajesh Jhaveri Stock Brokers P. Ltd. reported in [2007] 291 ITR 500 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 80-IB(5) at 100 per cent. The assessee has also claimed deduction 80-IB at 30 per cent. of the profit derived by the assessee's industrial undertaking at Bhiwadi. This unit started commercial operation in the assessment year 1996-97". 12. Further, in a requisition for information under section 142(1) of the Act the Income-tax Officer by his letter dated November 22, 2002, called for various details regarding the business of the petitioner-assessee. The peti- tioner duly replied to such requisition by their letter dated February 11, 2003, where the deduction claimed under section 80-IB was specifically mentioned. Thereafter, the Assessing Officer proceeded with such assess- ment. Further, there was another scrutiny assessment fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. v. Joint CIT reported in [2005] 275 ITR 155 (Cal) cited by the learned counsel for the petitioner, our court was concerned with deduction of expenditure for repairing ships. Such deduction was sought to be reopened and disallowed in section 147 proceedings after having been allowed in the previous assessment years. The court allowed the writ application after discussing in detail several authorities on the subject. The court held that when all the necessary information was before the Assessing Officer in the earlier assessments, reopening under section 147 amounted to change of opinion. 16. In my opinion, the facts on this case are quite similar to the one decided by our court in India Steamship Co. Ltd. v. Joint CIT reported in [2005 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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