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TMI Blog2014 (6) TMI 1045X X X X Extracts X X X X X X X X Extracts X X X X ..... t is to be treated as assessment order on the basis of the original return, it is barred by time and if it is an order of assessment passed on revised return, the order of assessment cannot stand as the revisedreturn was filed beyond time. 2. The assessee is engaged in the business of manufacturing and supplying of ACSR conductors for transmission/distribution of power lines. The Company filed its return of income for the assessment year 2001-02 on 31-10-2001, declaring the total income of Rs. 1,41,87,550/-. The assessee claimed deduction Rs. 85,25,899/- on its Tumkur Unit, under Section 80IA of the Income Tax Act, 1961 (for short 'the Act'). A survey was conducted on 09-03-2004 at the Tumkur Unit of the company. Statements of the employee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s hit by Section 153 of the Act. Thus, the appeal was allowed and the order of assessment was set aside. Aggrieved by the said order, the Revenue has preferred this appeal before this Court. 4. The appeal came to admitted on 9-12-2010 to consider the following substantial questions of law: 1.Whether the Tribunal was correct in holding that the assessment order passed based on scrutiny assessment initiated on 9.8.2002 on the original return dated 30.10.2001 cannot be sustained as the belated revised return had been taken into account in the course of assessment? 2.Whether the Tribunal was correct in holding that the order of assessment is time barred u/s.153 of the Act, though the assessment order was passed on 31.3.2004, which is last ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment order passed on the original return, it would be barred by time and therefore she submits that no case for interference is made out. 7. From the aforesaid facts and rival contentions, the following facts are not in dispute. The assessee filed a return of income on 31-10-2001 for the assessment year 2001-02 showing the income from business as Rs. 2,27,14,449/-. The assessee claimed a sum of Rs. 85,26,999/- as deduction under Section 80IA of the Act. A notice was issued to the assessee under Section 143(2) of the Act on 9-8-2002. Survey was conducted under Section 133 of the Act on 9-3-2004. In the course of survey, statement of the employees of theassessee were recorded and it was pointed out to them that the deduction claimed under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertaken at Tumkur Unit of the assessee-Company to verify the claims made in the return of income. Statements of the employees of the assessee were recorded. Those statements are also clearly set out in the order of assessment. As the old machinery was sold on 31-3-1998, the alleged new Unit had come into existence in the beginning of the year itself, and it cannot be saidthat at the time of commencement of new industrial undertaking, the value of old machinery was less than 20% of the total installed plant and machinery. Therefore it was held that the assessee was not liable to deduction underSection 80IA of the Act to begin with in the assessment year 1998-99 itself. Thereafter, the Assessing Authority had observed that when once correct p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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