2014 (11) TMI 271

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.... were directed against four orders of the Commissioner of Income Tax Appeals-VII, Mumbai for assessment years 1997-1998 to 2000-2001. 2. We are concerned in these Appeals with the assessment year 1999-2000 and 2000-2001. 3. The contention of Mr. Chhotaray, learned Counsel, appearing on behalf of the Revenue is that the Appeals raise a substantial question of law. The questions of law are formulated at pages 15 and 16 of the paper book of Income Tax Appeal No.947 of 2012 and 14 and 15 of paper book of Income Tax Appeal No.856 of 2012. It is urged that the Tribunal has erred in law in not considering the merits of the claim or the grounds on which the assessment was reopened. Mr. Chhotaray submits that the Tribunal was aware that the assess....

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....satisfied with the claim of the Assessee and did not make any dis-allowance under section 40(a) of the Income Tax Act of the payments made to non-residents for software. If there is no attempt on the part of the Department to prove anything in relation to trading of software which was imported by the Assessee, then, the conclusion reached is that the Assessing Officer and the Department was satisfied that there is no occasion for applying this legal provision. In any event, the assessment is reopened without any basis. The Assessing Officer in the order sheet dated 10th October 2003 recorded the so called reason for reopening the assessment in that he has made reference to substantial payments made to foreign parties for license to use of s....

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....f the opinion that the Revenue Appeals have no merits. The Assessing Officer in the assessment order has referred to the facts. He has held that the Assessee Company is one of the leading names in providing services of trained computer man power to foreign as well as domestic clients. It has filed a return of income and claimed amount of deduction under section 10A. Scrutiny Assessment proceedings were initiated, the questionnaire issued and together therewith there are responses from the Assessee. The relevant details are furnished, all the books were filed with the return. The business activities are referred to in great details and rather bifurcated and trifurcated. The trading imported software in India is one of the components in the b....

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.... reopening is purely on a change of opinion. We do not see how such a conclusion of the Tribunal can be termed by the Revenue as totally perverse or vitiated by an error of law apparent on the face of the record. 7. We are not unmindful of the decisions and the view taken by this Court and the Hon'ble Supreme Court in binding judgments. Pertinently in both judgments relied on by the Revenue we find that the Court's jurisdiction under Article 226 of the Constitution of India was invoked by the Assessee to challenge the reasons or the basis for reopening the assessment. In considering that argument and within the limited jurisdiction of this Court that this Court pointed out that so long as there are reasons and which constitute the ....