TaxTMI 
TaxTMI 
2018 (2) TMI 1531
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....-2013. In order to do so, the Assessing Officer has recorded the following reasons. "The assessee engaged in the business of Developing, operating and maintaining infrastructure facility in respect of solid waste management system, filed its return of income for AY 2012-13 on 29/09/2012 declaring total income of Rs. 1,57,68,050/=. The exemption of Rs. 11,39,41,979/= claimed by the assessee under Section 80IA of the Act, was disallowed and income was assessed to Rs. 13,00,56,370/= under Section 143 [3] of the Act on 12/03/2015. Subsequently, on perusal of assessment records, it is noticed that the assessee has claimed following expenses to have been incurred under Schedule 10 "Other Expenses" in its P&L Account during the y....
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....ell utilization expense of Rs. 1,63,93,557/= was also debited in profit and loss account. This was added back in the computation of income. However, cell utilization expenses of Rs. 97,73,616/= was again claimed as deduction allowable in computation of income. The assessee follows the method of debiting the cost of cell in proportion of utilization of its capacity every year and the balance value of un-utilized capacity of cell is shown in the Balance Sheet as balance of Cell. In this regard, it is pertinent to note that the assessee has neither received any goods / services/utility. Hence, no expenditure is in fact incurred. The deduction is claimed only in respect of contingent expenditure which may be or may not be incurred in future. He....
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....at the amount of Rs. 1,35,14,077/= [Rs. 33,66,101 + Rs. 97,73,616 + Rs. 3,74,360/=] is required to be taxed in the hand of the assessee. Hence, there is escaped assessment within the meaning of section 147 of the Act. Thus, it is a fit case for issuing notice under Section 148 of the Act." The petitioner raised objections to the notice of reopening under communication dated 6th July 2017. Such objections were however rejected by the Assessing Officer by an Order dated 31st July 2017. Appearing for the petitioner, learned counsel Shri Tushar Hemani raised the following contentions : [i] The Assessing Officer had scrutinized the entire claim of the deduction under Section 80IA [4] of the Act. In this context, he had also raised....
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....n under Section 80IA [4] of the Act of the assessee's income of Rs. 11.39 Crores [rounded off]. The Assessing Officer minutely examined such claim. During such scrutiny, he raised several queries; including the following, under communication dated 17th November 2014, relevant portion of which read as under : "8. Details in the following format in respect of the appellate proceedings for the last three scrutiny assessment orders passed in the case of assessee. A.Y Nature of Additions/ Disallowan ce made by AO Issue wise decision by the ld. CIT [A] Issue wise decision by the Hon'ble ITAT Issue wise decision by the Hon'ble High Court Court in which the appeal is presently pending 12. Please give a detail explan....
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...., he had already framed the assessment on 31st August 2017. Such facts and order of assessment were brought on record through amendment in which the order of assessment is also challenged. Principally on the ground of merger, the notice must be quashed. In a separate judgment passed today in Special Civil Application No. 16163 of 2017, we have held as under : "The second reason which we referred to in the previous paragraph is of merger. The Assessing Officer having rejected the claim of deduction under Section 80IA [4] of the Act, the issue we may recall was carried in appeal by the assessee. The Commissioner [Appeals] allowed the claim in its entirety. It would thereafter be not open for the Assessing Officer to reopen this ve....