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TMI Blog2022 (11) TMI 1256X X X X Extracts X X X X X X X X Extracts X X X X ..... escapement of income on the basis of fresh materials subsequent to completion of original assessment order and said materials may come from the assessment records also. Therefore, we are of the considered view that there is no merit in the arguments of the assessee that there is no fresh tangible material in the possession of the AO to form reasonable belief of escapement of income and thus, we reject the arguments of the assessee and uphold the reopening of assessment. Computation of deduction u/s.10A / 10AA - AO has not accepted the claim of the assessee on the ground that no proper evidence has been filed to substantiate the claim - We find that if assessee is able to explain reduction in export turnover with necessary evidences, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pondent : Mr.V. Nandakumar, JCIT ORDER PER G. MANJUNATHA, AM: This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-3, Chennai, dated 30.06.2016 and pertains to assessment year 2009-10. 2. The assessee has raised the following grounds of appeal: 1. For that the order of the Commissioner of Income Tax (Appeals) is contrary to law, facts and circumstances of the case and is opposed to the principles of equity, natural justice and fair play. 2. For that the Commissioner of Income Tax (Appeals) failed to appreciate that the order of the Assessing Officer is without jurisdiction. 3. For that the Commissioner of Income Tax (Appeals) failed to appreciate that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ority to file the following additional grounds of appeal for the first time. These grounds are pure legal issues. The appellant submits that the failure to raise these grounds were due to inadvertence. The appellant further submits that this omission is not intentional and craves the leave of the Hon'ble Appellate Authority to admit these additional grounds. ADDITIONAL GROUNDS OF APPEAL Ground No.3 For that the Commissioner of Income Tax (Appeals) failed to appreciate that the reopening is bad in law. Ground No.4 For that the Assessing Officer did not comply with the statutory requirements before issue of notice u/s.148. Ground No.5 For that change of opinion cannot be a reason for reopening. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riginal return of income, by inadvertent error, proforma invoice issued to customer has been accounted as sales, but in the revised return of income, the same has been rectified which resulted in reduction in turnover and also net loss for the year and therefore, the assessee has not claimed deduction u/s.10A / 10AA of the Act. The AO, however, was not convinced with the explanation of the assessee and according to the AO, the assessee could not explain downward revision of sales with necessary evidences and also eligibility to claim exemption u/s.10AA of the Act, and thus, rejected the arguments of the assessee and denied exemption claimed u/s.10AA of the Act. The assessee carried the matter in appeal before the First Appellate Authority, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pleted u/s.143(3) of the Act, on 29.09.2011, but the AO has not considered the issue of exemption claimed u/s.10AA of the Act, in right perspective of law and thus, we are of the considered view that, when the AO has not expressed any opinion, the question of concept of change of opinion does not arise. We further noted that the AO has formed reasonable belief of escapement of income on the basis of fresh materials subsequent to completion of original assessment order and said materials may come from the assessment records also. Therefore, we are of the considered view that there is no merit in the arguments of the assessee that there is no fresh tangible material in the possession of the AO to form reasonable belief of escapement of inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ain reduction in export turnover with necessary evidences, then the AO is bound to consider the turnover declared in revised return of income for the purpose of assessing income and also for claiming deduction u/s.10A / 10AA of the Act. As regards the second observation of the AO with regard to non-eligibility of the assessee for claiming such deduction, the assessee has filed necessary copies of approval from STPI under the provisions of Sec.10A / 10AA of the Act. From the above, it appears that the assessee is eligible for claiming deduction u/s.10A / 10AA of the Act. Since, the assessee has declared net loss for the year, the question of claiming deduction u/s.10A / 10AA of the Act, does not arise. Therefore, for that reason, deduction u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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