TaxTMI 
TaxTMI 
2017 (6) TMI 834
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....ct and is engaged in the business of Hazardous Solid Waste Management. For the assessment year 2006-07, the petitioner filed the return of income declaring total income of Rs. 3.10 Lacs after claiming deduction of Rs. 1.43 Crores under Section 80IA (4) of the Income Tax Act, 1961 ("the Act" for short). The return was taken in scrutiny. The Assessing Officer passed order of assessment on 26.12.2008, in which no disallowance was made for the deduction under Section 80IA (4) of the Act. 3. To reopen such assessment, the Assessing Officer had earlier issued a notice and also passed the order of assessment on 31.3.2010. A copy of the reasons for reopening is placed on record by the counsel for the petitioner. Perusal of such reasons would show ....
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....it, Alang and VMC Unit, Vadodara. On going through the record of A.Y. 2006-07, it is noticed that assessee has claimed deduction U/s 80IA of the Act of Rs. 1,43,17,930/-. Since the assessee is not fulfilling the conditions laid down U/s 80IA of the I.T.Act, the deduction claimed U/s.80IA of the Act for the A.Y. 2006-07 will have to be disallowed by reopening the assessment. In view of the above, I have reason to believe that there is escapement of income of Rs. 1,43,17,930/- in the hands of assessee which is required to be taxed by reopening the assessment u/s.147 of the Income-tax Act, 1961." 5. Assessee objected to such notice of reopening and the communication dated 25.3.2012. These objections were rejected by the Assessing Offic....
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....ring the assessment for the assessment year 2009-10 in case of the assessee it was found that the effluent treatment plant was not set up. GPCB had raised objections. He further submitted that even otherwise the basic conditions for deduction under Section 80IA (4) were not fulfilled by the assessee. 8. We have reproduced the reasons recorded by the Assessing Officer. First paragraph of the reasons pertains to the assessment for the assessment year 2009-10, during which the Assessing Officer noticed that the assessee was not treating the hazardous waste as per the norms and thus failed to fulfill the status of solid waste management treatment plant, which was eligible for deduction. He further formed the opinion that the assessee did not f....
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....the conditions for deduction as he had referred to in his order of assessment for the year 2009-10. This ground is completely independent and unrelated to his observation of the assessee not treating the hazardous waste as per the requisite norms. In the year 2009-10, the Assessing Officer had held that the assessee was executing the work as a work contractor and not in its own capacity. It was this defect, according to him, which made the assesee ineligible for deduction under Section 80IA (4) of the Act. 11. In this respect, firstly there was no failure on the part of the assessee to disclose necessary facts. The documents in the nature of contracts between the government and other agencies were very much part of the record. In a case wh....