2012 (2) TMI 158

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....titution, the Petitioner has challenged the validity of a notice issued on 20 June 2011, under Section 148 of the Income Tax Act, 1961, by which an assessment for Assessment Year 200506 is sought to be reopened. 3. The Petitioner filed its return of income on 26 October 2005 for Assessment Year 200506 and claimed a deduction under Section 10A in the amount of Rs.1.04 crores. The Assessing Officer passed an order of assessment under Section 143(3) on 10 December 2008. The Assessing Officer in the course of the order noted that the contention of the assessee "has been examined along with the facts of the case". The order noted that "the business activity of the assessee is manufacturing of jewellery in a Special Economic Zone." However, th....

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....opening the assessment is the order of assessment passed in Assessment Year 200708. The reasons do not exfacie contain any elaboration of how the assessee is alleged to have failed to disclose fully and truly all material facts necessary for the assessment for Assessment Year 200506. As a matter of fact, during the course of the assessment proceedings for Assessment Year 200506, the Assessing Officer considered the facts of the case and entered a finding that the assessee carried on a business activity of manufacturing jewellery in a Special Economic Zone. Moreover, it was submitted that against the order passed by the Assessing Officer for Assessment Year 200708, an appeal was filed by the assessee before the CIT (Appeals), who allowed the....

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....and is not a manufacturer so as to entitle it to the deduction under Section 10A. The issue, however, before the Court, is as to whether that can form the basis of the reopening of the assessment beyond a period of four years. The reasons which have been disclosed by the Assessing Officer do not set out as to what facts the assessee had failed to fully and truly disclose. Even a prima facie reference to the basis on which it is sought to be inferred that there was a failure to disclose all material facts has not been set out in the reasons. In that view of the matter, we are of the view that the primary jurisdictional requirement for reopening the assessment beyond a period of four years has not been fulfilled in this case. Since the order ....