2016 (6) TMI 699

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....ons which are recorded as under: "During the course of assessment proceedings for A.Y. 2007-08, it was noted that profits shown by the assessee in comparison to other builders (who are involved in the construction of similar housing projects but not available the benefit of deduction under section 80IB(10) ) is very high and hence the claim of the assessee under section 80IB(10) was also verified with reference to section 80IA (80) r.w. Section 80IB(10) and the assessee was requested to justify the profits declared in the profit and loss account with reference to the land cost, cost of construction by giving the comparable evidences of sale instances in the surrounding area of the project, architect's certificate, RCC engineers proposal ....

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.... section 148 of the I.T. Act, 1961." 2. The learned counsel for the petitioner submits that the petitioner has not made any claim under section 80IB of the I.T. Act which is clear from his income-tax return at page No. 22, paragraph No. 2. As per income tax return of the assessee at page No. 19, the assessee has not claimed any deduction under Chapter VI-A of the I.T. Act. Therefore, the reason for reopening of the assessment is bad in law in view of the decision of this court in the case of Aavkar Infrastructure Company v. Deputy Commissioner of Income-tax rendered on 4.11.2015 in Special Civil Application No. 12303 of 2014, particularly paragraph Nos. 8 to 11 which read as follows: "8. The record of the case reveals that for the yea....

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.... and loss account, which as noted hereinabove, would not reflect any profit as the assessee had not claimed any profit, and to the balance sheet part of the return of income, the Assessing Officer has made no effort to ascertain as to whether, in fact, the assessee has expended more amount than disclosed in the return of income. In the opinion of this court, while the report of the DVO may form the foundation for reopening the assessment, there must still be some reasons which warrant holding the belief that income chargeable to tax has escaped assessment so as to necessitate issuance of a notice under section 148 of the Act. The facts reveal that the entire basis for reopening the assessment of the petitioner for the year under considerati....