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TMI Blog2018 (8) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... d Counsel for the assessee, there is no variation in the claim of deduction u/s 80IB(5) in Form No.10CCB and P&L A/c and balance sheet of the assessee filed during the re-assessment proceedings. Therefore, the objection raised by the AO, in our opinion, is a technical objection and unless the AO brings out as to how the P&L A/c and the balance sheet are not reliable and vary with the results declared by the assessee in Form No.10CCB, the AO cannot deny the deduction on this ground alone. Reopening of assessment - Held that:- With regard to reopening of assessment, we notice that the assessment order u/s 143(3) was passed on 26/12/2008. The reopening proceedings for AY 2005-06 were initiated in November, 2008. The assessee sought reasons for reopening and filed its objections vide letter dated 25/11/2009. AO disposed off the objections and completed the assessment u/s 143(3) r.w.s. 147 on 29/12/2009. No doubt, the reassessment proceedings were initiated in November, 2008 but completed the assessment in December, 2009. But the order passed u/s 143(3) for the current AY on 26/12/2008 is within one month of initiating reassessment proceedings for previous AY relevant to AY 2005-06. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d assessee s claim of deduction u/s 80IB. Hence, both the assessee and revenue are in appeal before us against the order of CIT(A). 4. First we take up revenue s appeal in ITA No. 860/Hyd/2014 wherein the revenue has raised the following grounds of appeal: 1. The learned CIT(A) erred in law and on facts of the case. 2. The learned CIT(A) ought to have appreciated the disallowance of claim of deduction u/s 80lB. 3. The CIT(A) ought to have appreciated the facts covered in the case of Velayudhaswamy Spinning Mills are not identical the facts of the present case. 4. The CIT(A) ought to have appreciated the fact that the assessee has not submitted any documents evidencing other sources of income and the profits against which the brought forward and other losses were absorbed and hence no loss was outstanding. 5. The learned CIT(A) ought to have appreciated the fact the assessee had filed consolidated Profit and Loss account which is against the provisions as enumerated in Sec. 80IA(5) of the IT Act. 6. Any other ground(s) that may be urged at the time of hearing. 5. During the year under consideration, the assessee company claimed deduction u/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 06 in ITA No. 736/Hyd/2011 order dated 28/02/2018. He, therefore, submitted that the decision of the coordinate bench in AY 2005-06 may be followed. 10. Considered the rival submissions and perused the material on record. Similar issue came up for consideration before the coordinate bench of this Tribunal in assessee s own case for AY 2005-06 (supra), wherein the Bench has observed as under: 15. As regards grounds 1 2, we find that the Midnapore Unit had started production in the F.Y relevant to A.Y 2003-04 itself, but the claim for deduction u/s 80IB has been made for the first time during the A.Y 2005-06. The Hon'ble Supreme Court, in the cases of (i) CIT vs. Defree Engineering (P) Ltd reported in(2017) 77 Taxmann.com 27 (S.C); (ii) Pr.CIT vs. Cheran Spinning Mills (P) Ltd (2016) 76 Taxmann.com 28 (S.C); and (iii) CIT,Coimbatore vs. P.S. Velusamy reported in (2016) 74 Taxmann.com 262 (S.C) has held that the initial A.Y referred to in section 80IA would only be the year of deduction u/s 80IA claimed for the first time out of the total period, and not the year of commencement of eligible business and that the assessee had the option to choose the initial A.Y for claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccountant and that a separate report is to be obtained for each undertaking or enterprise of the assessee in respect of which deduction is claimed and the report is required to be accompanied by the P L A/c and Balance Sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity. 19. The learned DR, on the other hand, supported the orders of the authorities below. 20. Having regard to the rival contentions and the material on record, we find that the deduction u/s 80IB is a special deduction allowable to the undertakings which are set up in a backward area as certified by the Central Govt. Therefore, there is a requirement that while making the claim u/s 80IB(5) of the Act, the claim should be made inform No.10CCB signed by the CA of the assessee and should be accompanied along with the report for each of the undertaking along with the P L and the balance sheet of the undertaking as if it is a distinct entity. In the case of the assessee, though the assessee has got its books of account audited and Form 10CCB is signed by the C.A. of the assessee company, the report is not signed by the CA but is signed by the authorized signator ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to initiation of reassessment proceedings wherein the assessee s contention is that the AO without giving cogent reasons for believing income escaped assessment ought not to have issued notice u/s 148 of the Act. 13.1 Ld. AR submitted that AO has passed order u/s 143(3) of the Act on 26/12/2008 after considering all the information submitted before him. He also brought to our notice that AO has reopened the assessment for the previous AY i.e. 2005-06, the same was received by the assessee on 25/11/2008. All the issues which are raised during the present reopened assessment were same issues. AO has considered similar issue while passing the previous reopened assessment order. It is needless to say that at the same period, order u/s 143(3) was also passed. The AO has considered all the aspects while passing the order u/s 143(3). Even it can be presumed that AO has considered the issues in this assessment order. Therefore, he submitted that reopening of assessment for current impugned order is not proper. 13.2 Further, he submitted that depreciation claimed on Pollution Control Equipment is genuine and all the relevant informations are submitted before AO at the time of regu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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