2009 (10) TMI 122

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....h, in I. T. A. No. 217/Chandi/2008, for the assessment year 2001-02, proposing to raise the following substantial questions of law : "(i) Whether, in facts and circumstances of the case, the action of the authorities below in reopening the assessment of the appellant and restricting the deduction under section 80-IB are legally sustainable in the eyes of law ? (ii) Whether, in facts and circumstances of the case, the action of the learned Income-tax Appellate Tribunal was justified in canceling the deletion of interest charged under section 234B ?" 3. The assessee made claim for deduction under section 80-IB of the Act in respect of income received by way of incentive for export. The claim was upheld by the Assessing Officer, vide ....

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....dingly recomputed and the abovesaid incomes of export incentives and interest were reduced for the purpose of calculation of section 80-IB. For the assessment year 2002-03, the assessee has claimed deduction of Rs. 43,87,253 under section 80-IB and it includes export incentives of Rs. 1,08,22,487 and interest of Rs. 51,704 and the same have to be disallowed for the purpose of calculation of section 80-IB and, therefore, I have reason to believe that the income of Rs. 27,18,548 ((1,08,22,487 + 51,704) x 25%) has escaped assessment for the assessment year 2002-03. Issue notice under section 148 for the assessment year 2002-03." 4. After following the due procedure, reassessment was made and claim of the assessee under section 80-IB of t....

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....ing of the order of assessment. Reliance has been placed on the following judgments :   (i) Century Enka Limited v. ITO [1983] 143 ITR 629 (Cal) Siemens Information System Ltd. v. Asst. CIT[2007] 295 ITR 333 Bom) To submit that pre-existing judgment could not be the basis for reassessment (ii) CIT v. Ramachandra Hatcheries [2008] 305 ITR 117 (Mad) ITR 117 (Mad) To submit that reassessment could not be justified on change of opinion even if earlier opinion was erroneous. 7. Learned counsel for the Revenue supported the view taken by the Tribunal and submitted that it was not a case of mere change of opinion but of satisfaction of income escaping assessment. He submitted that it is not case of th....