TaxTMI 
TaxTMI 
2019 (1) TMI 865
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....ch, 2018 under Section 148 of the Act seeks to reopen the assessment for Assessment Year 2011-12. 3. The petitioner is a partnership firm engaged in construction of housing projects. For the subject assessment year, the petitioner filed its return of income claiming deduction under Section 80IB(10) of the Act in respect of its project "Sicilia" (project) in Pune. The Assessing Officer by a scrutiny assessment passed an order dated 25th March, 2014 under Section 143(3) of the Act allowing the petitioner's claim for benefit of deduction under Section 80IB(10) of the Act. This after having considered the issue of eligibility of Section 80IB(10) of the Act to the project as some of the flats appeared to be in excess of the area of 1,500 ....
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....sessee firm exceed the prescribed limit i.e. 1,500 sq.ft. as elaborately discussed in the foregoing paras and, thus, the assessee violated the provisions of Sec.80IB(10)(c) of the Act. 3. Analysis of information collected / received :The assessee had undertaken a project named "Sicilia" situated at S.No.70A/5/1, Ghorpadi, Pune admeasuring 26,938 Sq.Mtrs. The project consisted of 252 flats in 5 buildings A,B,C,D & E. The Valuer's Report dated 24.3.2014, vide Para Nos. 4.2 and 4.3 clearly mention (as per Area Statement enclosed therewith) that areas of 8 flats on the 1st floor and 16th flats on the 9th floor are in excess of 1,500 sq.ft. and terrace area was also a part of the flat. In accordance with the provisions of Sec. 80IB(10)(c)....
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....e assessee firm has violated the provisions of Section 80IB(10)(c) of the Act. 4. Enquiries made by the AO as sequel to information collected / received : As stated above, it is observed that the assessee failed to fulfill the conditions stipulated in Sec.80IB(10)(c) of the Act. 5. Findings of the AO : On the basis of the Valuer's Report, it is found that the areas of as many as 24 flats in the said project constructed by the assessee are in excess of 1,500 sq.ft. (including terrace areas). The assessee firm, therefore, did not comply with the conditions laid down u/s 80IB(10)(c) of the Act. Hence, the income of the assessee has been escaped from assessment to the extent of the deduction allowed u/s 80IB(10) i.e. Rs. 8....
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....titioner is not eligible to the benefit of Section 80IB(10) of the Act. 6. The petitioners filed its objections on 7th August, 2018 to the reopening notice. However, the objections were rejected by an order dated 27th November, 2018 by the Assessing Officer. 7. Mr. Naniwadekar, learned Counsel appearing in support of the petition submits that the impugned notice is without jurisdiction and in support made the following submissions : (a) The impugned notice is issued in respect of an assessment completed under Section 143(3) of the Act, beyond the period of four years from the end of the relevant assessment year and in the absence of any failure to disclose fully and truly all material facts, is without jurisdiction. This particular....
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....2 in respect of assessment completed under Section 143(3) of the Act. The basis of the impugned notice is the Government approved Valuer's Certificate dated 24th March, 2014. We note that this very certificate was a subject of consideration while passing the assessment order dated 25th March, 2014 under Section 143(3) of the Act. The reason do not state that the above certificate dated 24th March, 2014 came to the notice of the Assessing Officer after passing the Assessment Order dated 25th March, 2014. Thus, there is no failure to disclose all material facts truly and fully on the part of the petitioner during regular assessment proceedings. Thus, on the above ground itself, the impugned notice is bad. We further find that in the asses....