2017 (2) TMI 277

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....e return of income was filed on September 30, 2004 declaring total income at Rs. nil after claiming deduction under section 80-IB of Rs. 19,78,578. The assessment was finalised 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 of the benefit of deduction under section 80- IB) is very high. The abnormal rate of profit declared by the assessee appears to be influenced by the 100 per cent. deduction available under section 80-IB of the Income-tax Act, 1961. Further, the declaration of income in excess of the actual ear....

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....r by March 31, 2008 and the notice issued under section 148 of the Income-tax Act after March 31, 2008 is bad in law. Even otherwise, the Assessing Officer has considered the claim under section 80-IB(10) of the Income-tax Act and recorded his satisfaction that since all the conditions laid down in the provisions of section 80-IB(10) of the Act have been fulfilled by the assessee, it is eligible for the deduction under section 80-IB at 100 per cent. 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 Income-tax Act issued by the....

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..... We have gone through the reasons recorded at page No. 36 of the petition. We have also gone through the assessment order at page No. 29 where the Assessing Officer has recorded that "since all the conditions laid down in the provisions of section 80-IB(10) of the Income-tax Act have been fulfilled by the assessee, it is eligible for the deduction under section 80-IB at 100 per cent. of profit shown during the year i.e. Rs. 59,26,427". The Assessing Officer has issued the notice under section 148 of the Income-tax Act on August 10, 2009. Section 149 of the Income-tax Act reads as under : "Section 149. (1) No notice under section 148 shall be issued for the relevant assessment year- (a) if four years have elapsed from the ....