TaxTMI 
TaxTMI 
2005 (10) TMI 65
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....e assessment are identical, both the petitions are heard and disposed of by a common judgment. For the sake of convenience, we set out the reasons recorded for reopening the assessment for the assessment year 1999-2000 which read as follows: "M/s. German Remedies Ltd. Assessment year 1999-2000 It is seen from the assessment records that: (1) Expenses on interest, royalty, consultancy and analytical fees paid in foreign currency were allowed though the assessee has not furnished any evidence to show that TDS has been deducted at source before remitting it. (2) Deduction of gross dividend has been allowed against the allowable net dividend. (3) Central excise duty and customs duty payable on finished goods were not taken int....
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...., 2005. Therefore, the petitioner has once again moved this court to challenge the said order. It is a settled position of law that though the power conferred under section 147 of the Income-tax Act for reopening the concluded assessment is very wide, the said power cannot be exercised mechanically or arbitrarily. The expression "reason to believe that any income chargeable to tax has escaped assessment" means entertaining a reasonable belief that a particular income went unnoticed by the Assessing Officer and hence escaped assessment. Even after the introduction of the concept of deemed escapement of income by Explanation 2 to section 147 of the Act with effect from April 1, 1989, the belief that the income has escaped assessment entert....
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.... June 22, 1999, the assessee had furnished its annual return of deduction of tax at source during the financial year 1998-99 relevant to the assessment year 1999-2000. Receipt of the said letter is not disputed by counsel for the Revenue. Thus, the reopening of the assessment on the ground that the assessee has not furnished TDS particulars is wholly unjustified. The second ground for reopening the assessment is that the gross dividend has been allowed against the allowable net dividend. In the present case, dividend income received during the year was claimed as exempt and the same was accepted in the assessment order passed under section 143(3) of the Act. The reason for reopening the assessment is that in the absence of particulars it....
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....rom industrial activity and, therefore, the processing charges ought to have been excluded while computing deduction under section 80-IA/80-IB of the Act. It is brought to our notice that the very same issue was agitated for the assessment year 1996-97 and the Tribunal by its order dated September 1, 2004, has held that the processing charges received by the assessee are liable to be included for the purposes of deduction under section 80-IA/80-IB. The above decision of the Tribunal was brought to the notice of the Assessing Officer vide letter dated January 31, 2005. However, the Assessing Officer vide his order dated February 18, 2005, rejected the objection without referring to the said decision. This conduct of the Assessing Officer in ....