2022 (2) TMI 771

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.....2019. The original assessment was completed by the ACIT, Corporate Circle 1(2), Chennai u/s.143(3) of the Income Tax Act, 1961 (hereinafter the 'Act') for the relevant assessment year 2010-11 vide order dated 10.01.2013. The re-assessment was framed by the ACIT (OSD), Corporate Range 1, Chennai u/s.143(3) r.w.s. 147 of the Act, vide order dated 30.11.2017. 2. The only issue in this appeal of Revenue is against the order of CIT(A) quashing the reassessment proceedings. For this, Revenue has raised the following effective Ground Nos.2,3,4 & 5:- 2. The Ld. CIT(A) erred in quashing the reassessment proceeding by holding that reassessment proceeding was change of opinion but not regarding any factual finding or information, whereas ....

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....he reassessment proceeding light of the decision of the Hon'b1e Jurisdictional High Court of Madras, in the case of M/s Sword G1oba1 India (P.) Ltd. VS ACTT, Co. Circle VI(4) in Writ Petition No. 1738 of 2O15 dated July 15, 2015, held that " Under section 147 cases having wilfully made false or untrue statements at the time of original assessment and when that falsity comes to notice, it is not fair on the part of the petitioner to turn around and say you accepted my lie, now your hands are tied and you can do nothing" 3. We have heard rival contentions and gone through facts and circumstances of the case. The brief facts are that the assessee is a unit registered with STPI, Chennai as a 100% EOU vide approval letter dated 27.08.2008....

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....ndertaking which has been approved as a 100% EOU by the Board appointed in this behalf by the Central Govt. in exercise of powers conferred by Section 14 of Industries (Development & Regulation Act 1951) and the rules made under the Act. It has been held in the case of Regency Creation Ltd and Valiant Communications Ltd., (ITA 69-2009, 783 of 2009, 239 of 2011) as under: There is no notification or official document suggesting that either the Inter- Ministerial Committee or any other officer or agency was nominated to perform the duties of the Board constituted u/s 14 of the IDR Act for the purpose of approvals u/s.10B. Though the consideration which apply for granting approval u/s.10A and 10B may to an extent overlap yet ....

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....he Income Tax Act, 1961." 3.1 The assessee raised objections before the AO for reopening of assessment beyond 4 years but the AO rejected objections by relying on Explanation 1 to section 147 of the Act and stated that the reopening initiated by issuing notice u/s.148 of the Act is valid in law and accordingly, framed reassessment u/s.143(3) r.w.s. 147 of the Act by disallowing the claim of deduction u/s.10A of the Act amounting to Rs. 41,30,132/-. Aggrieved, assessee preferred appeal before CIT(A). 4. The CIT(A) quashed reassessment proceedings by stating that the assessee's case falls under first proviso to section 147 of the Act and original assessment was completed u/s.143(3) of the Act and further in view of the reasons recorded,....