2012 (10) TMI 1174

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....es of the case as well as in law, the Ld CIT (A) has erred in accepting the reopening of the assessment u/s 147 of the Income Tax Act, 1961 by the Assessing Officer. 2. On the facts and in the circumstances of the case as well as in law, the Ld CIT (A) has erred in relying upon the Assessing Officer's decision on set-off of unabsorbed depreciation of Rs. 27,37,487/- while computing deduction u/s 80-IB." 3. Briefly stated the relevant facts of the case are that the assessee is engaged in the manufacturing and trading and filed its return declaring the total income of Rs. 21,14,734/-. The same was scrutinized u/s 143(3) and the total income was determined at Rs. 30,68,880/-. The assessment was reopened by issuing a notice u/s 148 ....

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....324 ITR 60). Aggrieved with the above, assessee is in appeal before us. 4. Before us, Ld Counsel for the assessee mentioned that the Assessing Officer issued notice u/s 148 without jurisdiction and without prejudice, Ld Counsel did not press this ground. Therefore, without going into the merits of the arguments raised by Ld Counsel in support of the ground, ground no.1 is dismissed as not pressed. 5. Regarding ground no.2 relating to the procedure of computation of the allowable deduction u/s 80-IB of the Act vis a vis the unabsorbed depreciation of Rs. 27,37,487/-, Ld Counsel for the assessee brought our attention to provisions of subsection 5 to section 80-IB of the Act and argued that the profits of the eligible unit have to be com....