AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2017 (7) TMI 499
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.... and is engaged in the business of manufacturing pharmaceuticals and formulations. The company has manufacturing units located in Kheda and Kazipura. For the assessment year 2009-10, the petitioner had filed its return of income declaring total income of Rs. 14.75 crores (rounded off) under the normal provisions of the Income Tax Act, 1961 ('the Act' for short). The book profit of the assessee computed under section 115JB of the Act came to Rs. 47.98 crores. The Assessing Officer took the return in scrutiny. Various claims of the company were examined which included the assessee's claim of deduction under Section 10A of the Act. The Assessing Officer passed order under Section 143(3) of the Act on 29.12.2010 making certain additions. The cl....
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....plus interest u/s 234B of Rs. 8,17,950/- (i.e. 21% of 38,95,000/-)aggregating to Rs. 47,13,017/- 2. Therefore, I have reason to believe that income of the assessee has escaped assessment for A.Y 2009-10 within the meaning of u/s.147 of the I.T.Act, 1961. Issue Notice u/s 148 of the Income Tax Act, 1961 for the A.Y. 2009-10." 2.3 Armed with the copy of the reasons, the assessee raised objections to the notice of reopening under a communication dated 05.11.2014 in which the assessee interalia took the following objections: (i) That the claim of deduction under Section 10A of the Act which is the subject matter of reopening was scrutinized during the original assessment. Reassessment would, therefore, amount to change of opinion; (ii) ....
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....e permissible. (IV) The entire exercise of reopening of the assessment has been undertaken at the behest of the revenue audit party of the department. Though the Assessing Officer was not inclined to accept such a stand, he was compelled to issue notice for reopening the assessment. 6. On the other hand, learned counsel Shri Nitin Mehta submitted that the issue of removing freight and insurance charges from the export turnover was never examined by the Assessing Officer in the original assessment proceedings. He, therefore, had not formed any opinion on this aspect. The principle of change of opinion would, therefore, not apply. This issue was therefore also not subject matter of appeal before CIT(A) since it did not arise out of the ord....
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....3/- as the amount of freight and insurance included in the export turnover. It is observed that the said figure is the difference of export turnover and FOB value mentioned in note No.10 forming the part of the audited financial statement. This amount is not the actual amount of freight and insurance because the FOB value mentioned in the notes is a consolidated amount of the 100% EOU and the non-EOU unit. The actual working of claim of deduction u/s.10A after excluding the freight and insurance from the export turnover and the total turnover is as under: Profit of business(33,47,92,754/-) X Export Turnover (Rs.44,64,84,215 -1,52,53,173) Total Turnover (Rs. 44,65,04,479 - 1,52,53,173) = Rs. 33,47,77,022/- 3....
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....udit objection. In fact he gave detailed reasons why the stand was incorrect. He pointed out that the amount in question is really not in the nature of freight and insurance charges. In any case, if such amount is to be deducted from the export turnover forming the numerator part of the formula the same will also have to be deducted from the total turnover forming the denominator part. On such grounds, he opposed the audit objection. He, however, lastly conveyed that in any case this would be a case where exercise of revisional powers would be appropriate. 9. Once again, the Assessing Officer wrote to the Deputy Accountant General of Audit on 02.01.2013 and conveyed as under: "Therefore, if the freight and insurance is to be excluded fro....