2020 (12) TMI 681

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....he assessee. The subject matter of I.T.A.No.112/2016 pertains to the Assessment year 1997-98, whereas, subject matter of I.T.A.No.113/2016 pertains to the Assessment year 1998-99. Since, in both the appeals same substantial questions of law arise for consideration though for different Assessment Years, they were heard together and are being decided by this common judgment. The appeals were admitted by a bench of this Court vide order dated 06.03.2018 on the following substantial questions of law: (i) Whether on the facts and in the circumstances of the present case, ITAT was not right in concluding that this court, in the order dated 19.11.2012 in ITA No.648/2007 had upheld thee validity of reopening? (ii) Whether on the f....

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....an order of assessment denying the relief of deduction under Section 80-IA of the Act. The assessee thereupon filed appeals before the Commissioner of Income Tax (Appeals) who by an order dated 04.09.2012 quashed the order of assessment passed by the assessing authority and allowed the appeals preferred by the assessee. Thereupon the revenue filed an appeal before Income Tax Appellate Tribunal (hereinafter referred to as 'the tribunal' for short). The assessee filed the cross objections. The tribunal by an order dated 30.09.2015 upheld the initiation of the re opening of the assessment. In the aforesaid factual background, the assessee has filed these appeals. 4. Learned counsel for the assessee submitted that while passing the i....

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....urse of assessment proceedings for the Assessment Year 2000-01. It is further submitted that the tribunal by placing reliance on the judgment of this court in I.T.A.No.648/2007 in the case of assessee has upheld the reopening of the assessment proceeding. It is also urged that while examining the reopening of the assessment, prima facie opinion regarding statement of income was sufficient and the same need not be established with conclusive proof or evidence. It is further submitted that subsequent facts, which comes to the knowledge of Assessing Officer can be taken into consideration to decide whether the assessment proceedings should be reopened or not. In support of aforesaid submissions, reliance has been placed on decisions of Supreme....

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.... the aforesaid judgment, reads as under: It is the contention of the assessee that the exemption given initially in the first year is accepted and the same should be continued for further years is a question left open to be canvassed before the Assessing Officer. The question whether making of water filter amounts to industrial and manufacturing activity is also kept open for consideration. In that view of the matter, the order of the tribunal is upheld. The Assessing Officer shall take note of the observations made above while making assessment and granting deductions.   8. It is pertinent to mention here that the Commissioner of Income Tax (Appeals) had held that full information in respect of sales of spares as well as m....