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TMI Blog2014 (7) TMI 593X X X X Extracts X X X X X X X X Extracts X X X X ..... sclosing fully and truly all material facts necessary for completion of assessment for that AY - notice u/s 148 was issued to recompute the disallowance of deduction allowed u/s 80HHC based on the information already available on record which is not permissible in law since there is no failure on the part of the assessee in disclosing fully and truly all material facts necessary for completion of assessment and, therefore, issue of notice u/s. 148 is bad in law – Relying upon CIT vs. Purolator India Ltd. [2011 (11) TMI 365 - DELHI HIGH COURT] followed - the return of income and the material placed on the record by the assessee together with the return would make it abundantly clear that the assessee had set forth the basis of its claim and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 80HHC of the Act. 4. On further appeal before the CIT(A), the AR of the assessee argued that notice u/s. 148 was barred by limitation. It was further stated that notice was issued for recomputing deduction u/s. 80HHC and that there was no failure on the part of the assessee to provide the requisite information. The CIT(A) relying on the cases of (1) CIT vs. Kelvinator of India (251 ITR 1) (FB) (Del), (2) Apollo Hospitals Enterprises Ltd. vs. ACIT (287 ITR 25) (Mad) and (3) CIT vs. Abdul Rahaman Sait (306 ITR 142) (Mad) held that during the original assessment proceedings u/s. 143(3) of the Act, the very deduction u/s. 80HHC was recomputed and the very deduction was subject matter before the CIT(A) vide ITA No. 088/AC-16(1)/CIT(A)-V/200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer. The DR further submitted that the CIT(A) erred in holding that the issuance of notice u/s. 148 were not in order, since notice u/s. 148 was issued on 25.03.2010 after obtaining approval of CIT-IV, Hyderabad on accordance with the provisions u/s. 149 and 151 of the IT Act, 1961. 8. The learned counsel for the assessee while supporting the order of the CIT(A) relied on the judgement of Hon ble Supreme Court in the case of CIT vs. Foramer France (264 ITR 566) (SC) and the Hon ble High Court of Andhra Pradesh in the case of Mahalakshmi Motors vs. DCIT (265 ITR 53). 9. We find from the reasons recorded that notice u/s. 148 was issued to recompute deduction allowed u/s. 80HHC of the Act based on the information conta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore as could be seen from the above proviso where an assessment was already completed u/s 143(3) such assessment cannot be reopened after the expiry of four years from the end of the relevant assessment year. Therefore in the Appellant's case, since assessment was completed u/s 143(3) on 31.3.2006 the same cannot be reopened after four years from the end of the assessment year i.e., the assessment cannot be reopened beyond 31.3.2008 unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee in disclosing fully and truly all material facts necessary for completion of assessment for that assessment year. 13. As can be seen from the reasons recorded for iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act of 2009 with retrospective effect from 1.4.2001. According to the Assessing Officer income was computed under section 115JB without any addition being made on account of provision for diminution in the value of investment and provision for doubtful debts and advances. Both the reasons which have been indicated by the Assessing Officer may be reflective of the fact that there is an escapement of income. But that in itself is not sufficient to validate the reopening of assessment beyond a period of four years. Beyond the period of four years, the power of the Assessing Officer is structured by the requirement that there must be a failure on the part of the assessee to fully and truly disclose all material facts for the assessment. Neither ..... X X X X Extracts X X X X X X X X Extracts X X X X
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