2010 (8) TMI 369

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....nbsp; The facts in brief :   2. For the assessment year 1999-2000, the assessee filed return showing "nil" income by claiming deduction under section 80HHC of the Income-tax Act, 1961. The assessee's return was initially processed under section 143(1) of the Act. The assessee was engaged in manufacturing, trading and exporting of leather goods.   2.2. The Assessing Officer reopened the assessment by invoking the provisions under section 147 of the Act. The reopened assessment was completed on March 18, 2003. Accordingly, the deduction claimed by the assessee under section 80HHC of the Act, was scaled down to Rs.73,42,876. In the said reassessment order, the loss from the export business was adjusted in accordance with the....

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.... ITR 167. The learned counsel therefore submitted that inasmuch as the order passed in the earlier reassessment proceedings having been done by taking into consideration of the negative business profits, the order passed by the Tribunal will have to be set aside. The learned counsel further submitted that as per the proviso to section 147, the order passed by the Assessing Officer is well within the period of limitation.   4. We are not able to countenance the said submission made by the learned standing counsel for the appellant. In the present case on hand, the assessee at the time of filing the return for the assessment year 1999-2000 has disclosed all the materials before the Assessing Officer and claimed deduction under section....

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....hat the first reassessment was done by the Assessing Officer under section 147 of the Act on March 18, 2003. Thereafter, notice for reopening the assessment for the second time was issued to the assessee on August 4, 2005. The assessment in the present case on hand is for the assessment year 1999-2000. The four year period of limitation for invoking the power under section 147 expired on December 31, 2004. As observed earlier, in the present case on hand, the assessee has disclosed all the material facts and he has also filed the return within the time. Therefore, the proceedings initiated by the Assessing Officer for the second time under section 147 is barred by limitation. Therefore, we are of the considered opinion that even the proviso....