2016 (6) TMI 698

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....asons which are recorded as under: "The return of income was filed on 30.9.2004 declaring total income at Rs. Nil after claiming deduction under section 80IB of Rs. 19,78,578/-. The assessment was finalized under section 143(3) at income as returned. The assessee firm is engaged in development and construction. It is noticed that profits shown by the assessee in comparison to other builders (who are involved in the construction of similar housing projects but not availing the benefit of deduction under section 80IB) is very high. The abnormal rate of profit declared by the assessee appears to be influenced by the 100% deduction available under section 80IB of the I.T. Act, 1961. Further, the declaration of income in excess of the actu....

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....8 of the Income-tax Act after 31.3.2009 is bad in law. Even otherwise, the Assessing Officer has considered the claim under section 80IB(10) of the I.T. Act and recorded his satisfaction that since all the conditions laid down in the provisions of section 80IB(10) of the Act have been fulfilled by the assessee, it is eligible for the deduction under section 80IB at 100% of profit shown during the year i.e. Rs. 59,26,427/-. No reasons are assigned that the claim which has been allowed by the earlier Assessing Officer is bad in law. The learned counsel for the petitioner has, therefore, contended that the notice under section 148 of the I.T. Act issued by the authority is bad in law. 4. Learned counsel for the respondents Mr. Mehta has sup....

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....order at page 29 where the Assessing Officer has recorded that "since all the conditions laid down in the provisions of section 80IB(10) of the Income-tax Act have been fulfilled by the assessee, it is eligible for the deduction under section 80IB at 100% of profit shown during the year i.e. Rs. 59,26,427/-." The Assessing Officer has issued the notice under section 148 of the I.T. Act on 10.8.2009. Section 149 of the I.T. Act reads as under: "sec. 149 (1) - No notice under section 148 shall be issued for the relevant assessment year - (a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b) or clause (c)" 7. As per the said section, for reopening of the assessment, notice ....