TaxTMI 
TaxTMI 
2019 (3) TMI 427
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.... 2011-12. 3. Brief facts leading to this Petition are as under: (a) The Petitioner is a Limited Liability Partnership and is engaged in construction activity. For the Assessment Year 201112, the Petitioner filed its return of income on 15th September, 2011. In its return of income, the Petitioner declared an income of Rs. 29.58 lakhs from its project "Akshar Valencie" (project). However, the Petitioner claimed deduction of 100% of its income under Section 80IB of the Act. Thus, declaring its taxable income as "Nil". (b) The Assessing Officer selected the return for scrutiny. During the scrutiny proceedings, the Assessing Officer called for details in respect of bookings advance/ deposit as per the format, including the date of agre....
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....ing deduction under the aforementioned section. Since multiple flats have been registered/ allotted in the name of same individuals, it is amply clear that the assessee has been in violation of express provisions of the act right from the commencement of the project Valencia in year 2010. Attention also needs to be drawn to the fact that the violation of section 80IB is not a one time event, rather the assessee has been flouting the norms right from the commencement of the project in 2010 to the year 2015. Also, it is worth noting that as many as 25 flats have been registered and advances received from against four flats in the said project 2010 to 2016 flouting the conditions stipulated in section 80IB(10)(f). In view of the above....
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....sessment to the tune of Rs. 29,58,133/(Rs. Twenty nine lakh fifty eight thousand one hundred thirty three only) chargeable to tax within the meaning of Explanation 2(c) of section 147 of the I. T. Act, 1961. As such it is a fit case for issuance of notice u/s. 148 of the Income Tax Act, 1961. In this case, since more than four years have lapsed from the end of assessment year under consideration, hence necessary sanction to initiate proceedings u/s. 147 and to issue notice u/s. 148 of the I. T. Act may be accorded as per provisions of section 151 of the Income Tax Act." (d) On 4th September, 2018, the Petitioner filed its objections to the above reasons in support of the impugned notice dated 27th March, 2018. The Assessing Offi....
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...., the Assessing Officer found that the commencement certificate in respect of the project was given only on 21st September, 2010. Thus, the allotment of the flat and receipt of consideration prior to 1st April, 2010 could not have been taken place. Consequently, the Petitioner could not have claimed the benefit of Section 80IB (10)(f) of the Act, as the allotment and payments would have been made subsequent to the amendment w.e.f. 1st April, 2010 by which clause (f) to Section 80 IB (10) of the Act, was introduced. In the above circumstances, it is submitted that, there is no need to interfere with the impugned notice and Petitioner be directed to respond to the notice and participate in the reassessment proceedings. 7. It is a settle....
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....nt proceedings, for the subject Assessment Year 2011-12, the Petitioner had at the instance of the Assessing Officer given complete details with regard to the purchase of the flat, the date of agreement of purchase of the flats and also date of possession to the Assessing Officer. The same was examined by the Assessing Officer. At that time, the Assessing Officer was satisfied that the flats were sold prior to the amendment of 2010. It is consequent to the above that the Assessing Officer passed an order dated 26th March, 2014 under Section 143 (3) of the Act and accepted Petitioner's claim for deduction under Section 80 IB (10) of the Act. Thus, in view of the above, the full and true disclosure at the time of regular assessment, the i....
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....tution or declaration is permissible. No additions can be made to those reasons. No inference can be allowed to be drawn based on reasons not recorded. It is for the Assessing Officer to disclose and open his mind through reasons recorded by him. He has to speak through his reasons. It is for the Assessing Officer to reach the conclusions as to whether there was failure on the part of the assessere to disclose fully and truly all material facts necessary for his assessment for the concerned assessment year. It is for the record in black and white. The reasons recorded should be clear and unambiguous and should not suffer from any vagueness. The reasons recorded must disclose his mind. The reasons are the manifestation of the mind of the Ass....