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TMI Blog2023 (12) TMI 1135X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 80HHE and not under Section 10A of the I.T. Act and accordingly, assessee was not entitled to claim such expenditure under Section 10A of the I.T. Act, the non-drawing of such legal inference by the assessing officer at the relevant point of time cannot result in holding that there is no true and full disclosure of primary facts. Whether the re-assessment notice u/s 147 r/w Section 148 of the I.T. Act is merely a product of change in opinion and accordingly is impermissible in law? - A perusal of Section 148 of I.T. Act, the notice along with the reasons for reopening make it clear that the tangible material relied upon are the MSA s, Works contracts/SCW s, Invoices and other details relating to the deduction claimed under Section 10A of the I.T. Act. All of which is stated to have come to the notice of the Department relating to the Assessment Year 2008-2009. However, even on a perusal of para-2.10 of the Assessment Order relating to the Assessment Year 2008- 2009, the assessee as has been asked on innumerable occasions to submit MSAs and SOWs that it had with its clients the assessee has only been able to provide some of the sample MSAs and SOWs . Similar observation is made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... :- The nexus between the technical services rendered and the STP which is necessary for an allowable deduction u/s 10A is a legal requirement and existence of such nexus is a conclusion to be arrived at by the AO. Once the primary facts regarding providing of technical services outside India is made out, there would end the duty of the assessee and the question of nexus is a matter that the Assessing Officer ought to have clarified by further investigation. The reliance on documents that has come out as regards the proceedings for the Assessment Year 2008-2009 by way of MSAs, Work Contracts, SCWs and Invoices cannot be sufficient by itself to initiate proceedings for deduction under Section 10A of the I.T. Act in light of absence of nexus. If that were to be so, as the reliance on such documents for the purpose of reducing Section 10A of I.T. Act, the deduction for Assessment Year 2008-2009, itself has not attained finality and is subject to appeal as averred by the petitioner in the pleadings which remains uncontroverted. If that were to be so, the material relied upon in assessment proceedings for the Assessment Year 2008-2009 not having been finally adjudicated so as to indicate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 55 (iv) Whether the bar under third Proviso to Section 147 of the I.T. Act is a legal impediment insofar as the present re-assessment notice is concerned? 60 IV Implication of Circular No. 1/2013 80 The petitioner has filed three Writ Petitions before this Court i.e., W.P. /2013, 43236/2013, 43237/2013. The petitioner who is common in all these Writ Petitions has sought to challenge the re-assessment proceedings initiated pursuant to the notice issued under Section 148 read with Section 147 of the Income Tax Act, 1961 ( I.T. Act ). 2. W.P. No. 15061/2013 pertains to the Assessment Year 2005-2006; W.P. No. 43236/2013 pertains to the Assessment Year 2006-2007; W.P. No. 43237/2013 pertains to the Assessment Year 2007-2008. I. FACTS:- A. W.P. No. 15061/2013 3. The petitioner has sought for a declaration that the proceedings initiated by the respondent No. 1- Deputy Commissioner of Income Tax (DCIT) under Section 147 read with Section 148 of the I.T. Act, as being barred by limitation and without jurisdiction. The challenge is laid to the notice at Annexure- G dated 29.03.2012, under Section 148 r/w Section 147 of I.T. Act for the Assessment Year 2005-2006 which preceded the order of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional Commissioner of Income Tax Range-11, Bangalore, took up the petitioner s assessment for the Assessment Year 2008-2009 and had disallowed the petitioner s claim for deduction under Section 10A of the I.T. Act substantially. It is the case made out by the petitioner that taking note of the assessment for the Assessment Year 2008-2009, the Assessing Officer issued a notice dated 29.03.2012 under Section 148 r/w Section 147 of the I.T. Act proposing to reassess the petitioner s income for the Assessment Year 2005-2006. 10. Insofar as the reassessment under Section 148 of the I.T. Act, the reasons recorded prior to issuance of notice was responded by filing of detailed objections by the petitioner invoking the provisions under Section 147 of the I.T. Act which came to be rejected by an order dated 13.03.2013. B. W.P. No. 43236/2013 11. The petitioner has sought for a declaration that the proceedings initiated by the respondent No. 1 Assistant Commissioner of Income Tax under Section 147 read with Section 148 of the I.T. Act as being barred by limitation and without jurisdiction. The petitioner has also challenged the notice dated 13.09.2012 (Annexure- D ) under Section 148 read wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout jurisdiction. The petitioner has also challenged the notice dated 08.10.2012 (Annexure- D ) under Section 148 r/w Section 147 of the I.T. Act for the Assessment Year 2007-2008. Further, the petitioner has also sought for quashing of the order bearing F.No.DCIT-C-11-4/BGL/13-14 dated 26.08.2013 (Annexure- J ) which is the order passed by respondent No. 2 rejecting the objections filed by the petitioner to the notice issued under Section 148 of the I.T. Act for reopening of assessment in respect of Assessment Year 2007-2008. 17. Petitioner s regular assessment for the Assessment Year 2007-2008 was taken up under Section 143(3) of the I.T. Act. In due course of assessment with regard to certain international transaction and furnishing of Audit Reports under Section 92E reference was made to Transfer Pricing Officer under section 92CA of the I.T. Act. Thereafter, vide order dated 23.12.2010 a draft assessment order was forwarded to the assessee and the assessee filed objections to it before the Dispute Resolution Panel. Subsequently, the Assessment Order came to be passed vide order dated 30.08.2011 and in such order the petitioner s claim for deduction under Section 10A of the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Works Contracts/ Scope of Work (SCW), Invoices and other details related to claim of rebate under Section 10A of the I.T. Act establishes that the assessee has earned income from Deputation of Technical Manpower (DTM) and not from export of software. Such material was not part of the assessment proceedings for the Assessment Years in question. (b) The Tangible material that has come forth during the assessment proceedings for the Assessment Year 2008-2009 was not a part of the records during the earlier assessment proceedings and accordingly, on the basis of such material re-assessment is permissible. (c) That the aspect of deputation of technical manpower was not dealt with by the Assessing Authority in the earlier assessment proceedings and such DTM came to light only in the assessment year 2008-09 and hence subject matter is different and accordingly third proviso to Section 147 is not attracted. (d) The re-assessment notice cannot be said to be on the basis of change of opinion as assessment proceedings never dealt with the issue of eligibility of Section 10A deduction, but only dealt with type of expenditure that has to be excluded as per Section 10A(4) of the I.T. Act and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year) : Provided that where an assessment under sub- section (3) of section 143 or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year: xxx Accordingly, the jurisdiction to re-open the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oved, what other facts can be inferred from them, and taking all these together, to decide what the legal inference should be. 9. There can be no doubt that the duty of disclosing all the primary facts relevant to the decision of the question before the assessing authority lies on the assessee. To meet a possible contention that when some account books or other evidence has been produced, there is no duty on the assessee to disclose further facts, which on due diligence, the Income Tax Officer might have discovered, the legislature has put in the Explanation, which has been set out above. In view of the Explanation, it will not be open to the assessee to say, for example I have produced the account books and the documents: You, the assessing officer examine them, and find out the facts necessary for your purpose : My duty is done with disclosing these account-books and the documents . His omission to bring to the assessing authority's attention these particular items in the account books, or the particular portions of the documents, which are relevant, amount to omission to disclose fully and truly all material facts necessary for his assessment . Nor will he be able to contend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty of the assessee is to disclose fully and truly all primary relevant facts, it does not extend beyond this. 28. From the above, it can be stated as follows:- a) Assessee is to disclose the primary facts in his possession and the Assessing Authority on the basis of such recovery or facts discovered on the basis of facts disclosed or otherwise, could draw inferences regarding such other facts. b) The duty to disclose does not extend beyond full and truthful disclosure of all primary facts. c) It is not the duty of the assessee to tell the Assessing Authority what inferences whether of facts or law should be drawn. d) There is no duty cast on the assessee to disclose inferences which is a duty imposed on the Income Tax Officer. e) The duty to disclose primary facts extends to making a disclosure which is full and true and excludes falsity. 29. It is to be noted that as the profits derived from export of computer software is eligible for deduction under Section 10A of the I.T. Act which has been claimed by the petitioner, at the same time profits derived from business of rendering technical services outside India are eligible for deduction under section 80HHE of the I.T. Act. 30. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er was engaged in export of computer software and the relevant details relating to deduction under Section 10A of the I.T. Act has been detailed in Annexure- A . The further declaration in Annexure- 1 annexed to Annexure- A which provides details relating to claim by the exporter for deduction under Section 10A of the I.T. Act contains a declaration as follows:- Name of the undertaking Software Technology Park Unit-I Software Technology Park (India Development Centre) Unit-II Software Technology Park (India Engineering Centre) Unit-III Software Technology Park Unit-IV Software Technology Park Technical support Contact Centre Unit-V Location and address of undertaking Digital GlobalSoft Limited 45/14 Tumkur Road Yeshwanthpur, Bangalore-560022 Digital GlobalSoft Limited 45/14, Tumkur Road Yeshwanthpur, Bangalore-560022. Digital Globalsoft Limited 93A, Industrial Suburb, Yeshwanthpur II Stage, Bangalore-560 022. Digital GlobalSoft Limited 45/14, Tumkur Road Yeshwanthpur, Bangalore-560022. Digital Globalsoft Limited 93A, Industrial Suburb, Yeshwanthpur II Stage Bangalore-560 022. Digital GlobalSoft Limited 3 rd floor, Khanija Bavan, 49, Race Course Road, Bangalore-560001. Digital Globa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above issues are raised before the AR of the assessee, AR of the assessee made a detailed submission. The gist of the submission made by the assessee are that the activities regarding which the expenditure incurred in foreign exchange do not amount to providing of technical services outside India regarding exclusion of communication expenses from both export turn over and total turn over, the same was claimed to be done on the basis of parity between export turn over and total turn over and also on the basis of definition of total turn over elsewhere in the provisions of the IT Act. 10. In light of the above submissions, on verification of the details collected in respect of expenditure incurred in foreign exchange, it is clear that the company s employees visit the clients location and provide software development services to the clients which are group companies. Therefore all these services rendered by the company are of the nature of technical services and therefore expenditure incurred in providing these services amounting to Rs. 263,01,80,361/- are required to be reduced from the export turn over as per the definition of export turn over contained in the provisions of Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice Agreements, Work Contracts/Scope of works, Invoices and other details related to the deduction claimed u/s 10A of the Income-tax Act were called for. On account of detailed fact finding during the course of this scrutiny proceedings for A.Y. 2008- 09, the following additions/disallowances to the returned income for A.Y. 2008-09, were made a. It is noticed that the assessee company is rendering a large body of work onshore abroad related to software developmental activities. However, it was detected that none of the said software development activities onshore abroad had any link whatsoever with the STP Undertakings in India. It had been noticed that the assessee had claimed all revenue from Software developmental activities under STPs based in India only. No part of the income had ever been admitted as generated out of the company s activities abroad. During the course of investigation conducted, it had been detected on facts as per various contracts/SOW, work orders and invoices that a large body of work related to software development activity conducted onshore abroad had no link whatsoever with the STP units in India. The said revenue receipt from onshore activity was treate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was exclusion of expenditure relating to the visits of the Company s employees as well as expenses incurred relating to software development services to the clients amounting to Rs. 263,01,80,361/-. Accordingly, it is contended that the very aspect of profits from rendering technical services in context of export of computer software having been examined and a decision based on legal appreciation having been arrived at, cannot be reconsidered subsequently in reassessment proceedings, as it is impermissible to reopen assessment on the basis of mere change of opinion . 37. The Apex Court in Commissioner of Income Tax, Delhi v. Kelvinator of India Ltd (2010) 2 SCC 703 [Kelvinator] has reiterated the settled position that mere change of opinion cannot be a ground for re-opening concluded assessments. The observations made at paras-5, 6, 7 and 8 are extracted as herein below: 5. On going through the changes, quoted above, made to Section 147 of the Act, we find that, prior to the Direct Tax Laws (Amendment) Act, 1987, reopening could be done under the above two conditions and fulfillment of the said conditions alone conferred jurisdiction on the assessing officer to make a back assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mber of court rulings in the past and was well settled and its omission from Section 147 would give arbitrary powers to the Assessing Officer to reopen past assessments on mere change of opinion. To allay these fears, the Amending Act, 1989, has again amended Section 147 to reintroduce the expression has reason to believe in the place of the words for reasons to be recorded by him in writing, is of the opinion . Other provisions of the new Section 147, however, remain the same. 38. It must be noticed that, in the present case, as against the Assessment Order passed for the Assessment Year 2005-06, under Section 143(3) of I.T. Act 1961, the Department took up proceedings under Section 263 of the I.T. Act observing that the order was erroneous and prejudicial to the interest of the Revenue. The observation at paras-4 and 16 of the order dated 22.12.2009 which touches on the aspect of allowable claims under Sections 10A and 80HHE of the I.T. Act, which are as follows: 4. It was also seen from the records that the assessee company had incurred substantial expenses in foreign currency for rendering technical services outside India which indicates that apart from the export of computer s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 10A/80HHE depends on the facts of the case for the relevant assessment year. 39. Finally, the order dated 22.12.2009 concludes with a direction as follows:- 17. to allow the deduction/deductions allowable u/s 10A/ 80HHE in accordance with law after making the necessary verification in the light of my observation above after giving the assessee a reasonable opportunity of being heard . 40. Consequent to such direction, the Assessing Officer has taken up the proceedings afresh and has passed an assessment order on 24.12.2010 while considering the aspect of deduction under section 10A of the I.T. Act. The observations made at para-7 of the order would indicate application of mind to be an aspect of excluding, 7. b) expenses, if any, incurred in foreign exchange in providing the technical services outside India . 41. Further, the observations at para-10 in nature of finding reads as follows: 10. In light of the above submissions, on verification of the details collected in respect of expenditure incurred in foreign exchange, it is clear that the company s employees visit the clients location and provides software development services to the clients which are group companies. Theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices . The finding by the Assessing Authority is by placing the burden on the assessee regarding correlation between the MSA, SOW/ work order vis-a-vis work carried out by STP/SCZ unit. 46. In light of the above, the tangible material sought to be relied upon itself not being complete, it cannot be held that the MSAs and SCWs would demonstrate that the declaration made by the assessee leads to a conclusion that there has been escapement of income. It is also a settled position that reassessment proceedings cannot be in the nature of review and accordingly, the material as has come to light in the assessment proceedings for the Assessment Year 2008- 2009 cannot be a sufficient ground to resort to reassessment proceedings. (iii) Whether the re-assessment notice under Section 147 r/w Section 148 amounts to borrowed satisfaction as it places reliance on findings recorded in the assessment proceedings recorded in the Assessment Year 2008-2009? 47. The jurisdictional requirement under Section 147 of the I.T. Act for re-assessment requires the assessing officer to entertain reasons to believe that income chargeable to tax has escaped assessment . It is clear that the reason to believe ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e company had substantial revenue from such DTM activity and it claimed the revenue receipt from the same as software development activity. It had been detected that assessee had made similar claims for earlier Assessment Years also. 4. During the course of assessment for A.Y. 2008-09, it had been clearly detected that similar issues of additions/disallowances were there for previous Assessment Years also. In fact the assessee company is in the same business for the last few years and the business agreements and business practices of A.Y. 2008-09 had actually continued from the last several years. This had been noticed with respect to the MSAs, Work orders, SOWs and Invoices called for and seen during the course of assessment proceeding for A.Y. 2008-09. 5. As per A.Y. 2008-09, 12.5% of the total onsite revenues by the assessee have been held to be out of deputation of technical manpower receipts. Similarly 12.5% of the total onsite receipts of the assessee have been held to be on account of onshore revenues not related to the STP Undertakings in India. As per this preliminary estimation and considering similar percentages of DTM activity and onshore revenue activities for the year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Order dated 30.08.2011. 04.11.2011 Appeal pending as on date of 148 notice. 52. In the above context and looking into the bar under the third proviso to Section 147, the object being to prohibit proceedings under Section 148, when appeal/revision/reference is pending, in the present case, taking note of the details in the Table above, more particularly, noticing pendency of appeals in Column No.(4) as on the date of Section 148 notice, clearly, notice under Section 148 was hit by the bar under third proviso to Section 147 of I.T. Act. Analysis in W.P. No. 43236/2013 and 43237/2013:- 53. In respect of re-assessment notice for the Assessment Year 2006-2007 in W.P. No. 43236/2013 and for the Assessment Year 2007-2008 in W.P. No. 43237/2013 in light of the detailed discussion made hereinabove, though it relates to the Assessment Year 2005-2006, the points raised for consideration supra at para-20 are also applicable as regards the Assessment Year 2006-2007 and 2007-2008 and are answered as hereinbelow:- In W.P. 43236/2013:- 54. Insofar as Assessment Order relating to the Assessment Year 2006-2007 has dealt with the computation of deduction under Section 10A of the I.T. Act and the rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for each and every item of the expenditure incurred by the assessee in any contract for services it had entered into with the client. The assessee while pricing a product or service normally arise at the cost of providing the product or service and then adds a margin of profit. In such a case the expenses, incurred in foreign currency in connection with provision of technical service outside India, not forming part of turn over does not arise at all. Therefore the amount of expenditure incurred by the assessee in foreign currency in connection with provision of technical services outside India are deemed to have been recovered and deemed to have been included in the receipts received from the client. Therefore the said expenditure is to be reduced from the export turn over as the same has been specifically provided by the Act. 20. In view of the above discussion, exclusion of the above mentioned expenses namely expenses incurred in foreign exchange in providing technical services outside India to the extent of Rs. 294,66,48,857/- and expenses incurred on communication expenses attributable to the delivery of software outside India to the extent of Rs. 17,28,91,032/-, has been rest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only known as Body Shopping was eligible for deduction u/s. 80HHE of the I.T. Act and was not included as an eligible activity u/s. 10A of the I.T. Act. It had been noticed from the contracts and invoices that the assessee Company had substantial revenue from such DTM activity and it claimed the revenue receipt from the same as software development activity. It had been detected that assessee had made similar claims for earlier Assessment Years also. 4. During the course of assessment for A.Y. 2008-09, it had been clearly detected that similar issues of additions/disallowances were there for previous Assessment Years also. In fact, the assessee Company is in the business for the last few years and the business agreements and business practices for A.Y. 2008-09 had actually continued for the last several years. This had been noticed with respect to MSAs, Work orders, SOWs and Invoices called for and seen during the course of assessment proceedings for A.Y. 2008-09. 5. As per A.Y. 2008-09, 12.5% of the total onsite revenues by the assessee has been held to be out of deputation of technical man power receipts. Similarly, 12.5% of the total onsite receipts of the assessee have been hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment proceedings for the Assessment Year 2008-2009 not having been finally adjudicated so as to indicate requirement to reduce Section 10A deduction, the same cannot be made use of for reassessment proceedings. The requirement that there must be true and full disclosure cannot be stated to have been breached by taking recourse to the material produced during the Assessment Year 2008-2009 as such conclusion for the Assessment Year 2008-2009 leading to reduction in Section 10A deduction itself is a subject matter of further adjudication. In W.P. 43237/2013:- 59. In the Assessment Order, for the Assessment Year 2006-2007, the deduction under Section 10A of the I.T. Act to the extent of Rs. 96,02,15,533/- was sought for as regards 4 units in the STPI. The scope of deduction under Section 10A is specifically dealt with under the caption computation of deduction under Section 10A of the I.T. Act, out of the total expenditure in foreign currency of Rs. 342,32,22,291/-, an amount of Rs. 336,14,67,945/- was the expenses incurred in providing technical services outside India. Insofar as the deduction claimed under Section 10A of the I.T. Act and queries were raised, the observations o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount to providing technical services outside India, the Assessing Officer has concluded that the said expenditure incurred in foreign exchange for visit of the Company s employees to the location of the clients and providing software development services would not fall within the permissible deduction under Section 10A of the I.T. Act. 61. Subsequently, after notice was issued under Section 148 of the I.T. Act for reassessment and upon request, reasons for reopening assessment was communicated, it is made out in the order that during the course of scrutiny proceedings conducted for Assessment Year 2008-2009, documents in the nature of MSAs, Work contracts/SCWs, Invoices have come forth. The basis of materials that has come forth for the Assessment Year 2008-09 leading to disallowing of expenditure is reflected in paras-3(a) and 3(b) and the same is extracted hereinbelow:- 3. a. It is notified that the assessee company is rendering a large body of work on shore related to software developmental activities. However, it was detected that none of the said software development activities onshore abroad had any link whatsoever with the STP undertakings in India. It had been noticed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TRACT AND TO WHAT EXTENT IT IS RELEVANT. As per the practice prevalent in the software development industry, generally two types of agreement are entered into between the Indian software developer and foreign client. Master Services Agreement (MSA) is an initial general agreement between a foreign client and a Indian software developer setting out the broad and general terms and conditions of business under the umbrella of which specific and individual Statement of Works (SOW) are formed. These SOWs, in fact, enumerate the specific scope and nature of the particular task or project that has to be rendered by a particular unit under the overall ambit of the MSA. Clarification has been sought whether more than one SOW can be executed under the ambit of particular MSA and whether SOW should be given precedence over MSA. The matter has been examined. It is clarified that the tax benefits under Sections 10A, 10AA and 10B would not be denied merely on the ground that a separate and specific MSA does not exist for each SOW. The SOW would normally prevail over the MSA in determining the eligibility for tax benefits unless the Assessing Officer is able to establish that there has been split ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt activity for tax benefit under section 10A. The clarification in that regard at para- 2(i)(a) is extracted below: (a) CBDT had earlier issued a Circular (Circular No. 694 dated 23.11.1994) which provided that a unit should not be denied tax- holiday under sections 10A or 10B on the ground that the computer software was prepared on-site , as long as it was a product of the unit, i.e., it is produced by the unit. However, certain doubts appear to have arisen following the insertion of Explanation 3 to sections 10A and 10B (vide Finance Act, 2001) and Explanation 2 to section 10AA (vide Special Economic Zones Act, 2005) providing that the profits and gains derived from on site development of computer software (including services for development of software) outside India shall be deemed to be the profits and gains derived from the export of computer software outside India , and a clarification has been sought on the impact of the Explanation on the tax-benefits as compared to the situation that existed prior to the amendments. The matter has been examined. In view of the position of law as it stands now, it is clarified that the software developed abroad at a client s place would b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the issue of deduction under Section 10A of the I.T. Act, whether the assessee has made true and full disclosure of relevant primary facts. In order to come to a conclusion regarding the above two aspects, the circular would throw some light and it is in such context that the circular could be referred to. 68. Accordingly, the conclusion arrived at by the Assessing Officer for the Assessment Years 2005-2006, 2006-2007 and 2007-2008, when examined from the point of view of the Circular would strengthen the case of upholding deduction under Section 10A of the I.T. Act and would indicate that the resort to a review by recourse to Section 148 of the I.T. Act in the guise of reassessment would be a futile exercise. 69. Accordingly, the Writ Petitions are disposed off in terms of the following:- (i) In W.P. No. 15061/2013, the re-assessment notice issued under Section 147 r/w Section 148 of the I.T. Act at Annexure 'G' dated 29.03.2012 for the Assessment Year 2005- 2006, is set aside and consequently, the order bearing F.No.DCIT-C-11(4)/12-13 at Annexure 'P' dated 13.03.2013 passed by respondent No. 1 rejecting the petitioner s objection as regards jurisdiction to iss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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