2015 (5) TMI 262

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....ry same petitioner for the assessment year 2009-10. The issue pertains to the high level of operating profits and the consequent alleged excessive deduction taken by the petitioner-assessee under section 10A of the said Act. 2. The petitioner had filed its objections and the Assessing Officer passed an order rejecting the objections. In that order the Assessing Officer specifically noted that the fact that the assessee was claiming excessive deduction, as above, under section 10A surfaced for the first time during the assessment proceedings for the assessment year 2009-10 in the case of the petitioner itself. It was also noted that while going through the income- tax return details for the subject year it was observed that here also the pe....

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....essee as a rea son to summon sub-section (10), without even remotely demonstrating the existence of any 'arrangement' between the assessee and its AEs aimed at producing extraordinary profits in the hands of the assessee. The conclusion drawn by the authorities below in such circumstances cannot be ex consequent sustained." 4. The consequence of the above decision by the Tribunal is that the very basis for forming the purported reason to believe that the income had escaped assessment in respect of the assessment year in question does not survive any further. The learned counsel for the petitioner, therefore, contended that the proceedings pursuant to the impugned notice under section 148 ought to be quashed as also the order reject....

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....ect of the assessment years 1998-99 and 2001-02, which, as pointed out above, had been deleted by the Tribunal. It was also noted in the said decision that the Revenue had not filed any appeal against the decision of the Tribunal deleting the said additions. 5. In these circumstances this court in Silver Oak Laboratories (supra), quashed further proceedings in respect of the notice under section 148 and also set aside the order whereby the objections of the assessee had been rejected by the Assessing Officer. A similar order is sought by the learned counsel for the petitioner in the present case. 6. We find that there is one factor which is different from that case and, that is, that while in the previous case no appeal had been filed aga....