2019 (1) TMI 544

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....are as under: Petitioner is a limited company and is engaged in providing offshore support services. For the assessment year 201112, the petitioner had filed a return of income on 29th September, 2011 declaring total income of Rs. 8,67,55,710/. The Assessing Officer passed a scrutiny assessment order under section 143(3) of the Income Tax Act ("the Act" for short) on 7th October, 2013 accepting the petitioner's declared income. 4. To reopen such assessment the Assessing Officer issued the impugned notice. In order to do so he had recorded reasons. The relevant portion of which reads as under: "1. Brief details of the Assessee: In the instant case, the assessee has filed return of income for the A.Y.2011-12 on 29.09.2011 decl....

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.... for MAT calculation will be Rs. 45,31,89,258/against the MAT profit of Rs. 8,75,59,796/declared by the assessee for the year under consideration. In view of the totality of the facts and documents on record coupled with the information gathered, I have reason to believe that the amount of Rs. 36,56,29,462/( as per MAT provisions) chargeable to tax for F.Y. 2010-11 relevant to A.Y. 2011-12 has escaped assessment, as the assessee has failed to disclose truly all material facts necessary for its correct assessment, the facts disclosed by the assessee are distorted and as per its convenience. 4. Enquiries made by the AO as sequel to information collected/ received: From perusal of paragraph 2 & 3 above, the material evidence gathered and....

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....rried out by the company were merely incidental activities and in absence of the core business activities, the assessee was not entitled to the benefits under chapter XII-G of the Act and the company should be treated as a normal company and all applicable provisions of the Act should be applied. 8. From the record we notice that the Assessing Officer had during the assessment proceedings raised multiple queries one of which was with respect to the business activities carried out by the assessee in response to which, the assessee had filed a comprehensive note on business activities carried out during the year of consideration. This note read as under: " ANNEXURE "A" :NOTE OF NATURE OF BUSINSESS The company is owning and operating ....

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....e one can gather that the assesseecompany had given full details of its activities pointing out that the company owns and operates various types of offshore supply vessels, Tugs and Anchor Handling vessels. These vessels are given on charter for offshore activities to the client on long term basis. Such vessels are deployed by the client for movement of man and material from shore to its offshore marine related activities. The vessels are also deployed for towing its barges and equipments to offshore fields. In the final order of assessment the Assessing Officer did not make any disallowance, but accepted the assessee's declared income. 10. Two things emerge from the discussion recorded so far. Firstly, that the assessee's nature....