2022 (8) TMI 1231

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....ound that the same are barred by limitation. 2. The petitioner is an assessee on the file of the Respondent/Assistant Commissioner of Income Tax. In respect of Assessment Year (in short 'AY') 2012-13 , the petitioner had claimed deduction under Section 80 IA of the Act, in respect of the profit and gains from infrastructural development. It had, in the year in question, been engaged in the development of highwaysin association with the National Highway Authority of India ( in short 'NHAI'). 3. The agreement entered into between contractor i.e., the petitioner and NHAI, granted to the petitioner the right to use the tolls collected during the construction period for funding of on-going construction and development activitie....

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....Thus, there is no doubt in my mind that the allowability of expenditure has been noted by the authorities on two occasions, both in the proceedings for assessment and thereafter in the proceedings for rectification. 8. It is in the light of the aforesaid narration, that one should test the reasons for reassessment that have been issued on 02.05.2019 pursuant to a notice under Section 148 issued on 29.03.2019. The reasons read as follows: "Firstly, there is no mention about such funding in the agreement dated 11.09.2010. Secondly, no such fund is seen to have been received by assessee till 31.03.2012 as evident from the financial statements filed along with the return. Further, assessee has not created any such reserve/fund till 31.03.201....

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....g to the veracity or otherwise of the reasons, it would suffice to look into the bar of limitation set out under the provisions of Section 147 itself. 10. Normally an order of reassessment is to be passed within a period of four (4) years from the end of the relevant assessment year. The assessment year in question is 2012-13 and the period of four (4) years would expire on 31.03.2017. However, in cases where the escapement of income as alleged by the respondent is attributable to an incorrect or incomplete disclosure made by the petitioner, the benefit of another two years is granted to the Department to reassess the income that had escaped assessment in the original instance. 11. The notice under Section 148 of the said Act is dated 29.....