TaxTMI 
TaxTMI 
TaxTMI 
2024 (10) TMI 537
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....as erred both on facts and in law in confirming the order of the AO rejecting the contention of the assessee that reopening the assessment under Section 147 of the Act and consequent reassessment without complying with the statutory conditions and the procedure prescribed under the law are bad and liable to be quashed. 3. On the facts and circumstances of the case, the learned CIT(A), NFAC has erred, both on facts and in law in confirming the order passed by the AO despite the fact that reopening the assessment proceedings as well as re-assessment order passed under section 148 of the Act are illegal, as the same have been made without assumption of valid jurisdiction. 4. (1) On the facts and circumstances of the case, learned CIT(A), NFAC has erred both on facts and in law in confirming the order of the AO rejecting the contention of the assessee that the reasons recorded for reopening the assessment does not meet the requirements under section 147 of the Act, bad in law and are contrary to the facts. (ii) That the learned CIT(A), NFAC has erred both on facts and in law in confirming the reopening ignoring the fact that there is no live nexus between the reasons recorded and....
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....n upholding validity of reassessment proceedings, despite the same having been initiated on the basis of mere change of opinion, without any new tangible material/ information coming to the possession of the assessing officer subsequent to completion of assessment under section 143(3) of the Act. 11. (i) On the facts and circumstances of the case, the learned CIT(A), NFAC has erred in confirming the disallowance of deduction of Rs. 69,31,555/- claimed under section 80-IC of the Act. (ii) That the above disallowance has been confirmed despite the fact that income on account of Export Incentives and foreign exchange fluctuation derived from the business of the assessee and hence eligible for the deduction allowable under section 80-IC of the Act. 12. The appellant craves leave to add, amend or alter any of the grounds of appeal. 3. Brief fact of the case is that the assessee was involved in the business of manufacturing of decorative & industrial laminated sheets at Baddi, Himachal Pradesh and claiming exemption u/s 80IC of the Act. The assessee has filed its e-return of income on 23-09-2009 declaring total income of Rs 561231/- for A.Y. 2009-10. The case of assessee was selec....
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....verification during the original assessment proceedings. He has also submitted that the assessee had made true and full disclosure of all material facts before the AO. 6. Reliance has placed on the following judgments:- 1. Calcutta Discount Company Limited Vs. Income Tax Officer, Companies District I, Calcutta and other 1960 (11) TMI 8 - Supreme Court 2. Gemini Leather Store Vs. Income Tax Officer, B Ward- Agra and Other s 1975 (5) TMI 1- Supreme Court dated 1-5-1975 3. Oracle Ind`Private Limited Vs. Assistant Commissioner of Income Tax, Circle -13 (1) New Delhi 2017 (TMI 967 -Delhi High Court dated July, 26 , 2017 4. Standard Industries Limited Vs. Deputy Commissioner of Income Tax, Circle - 3 (3) (1), Mumbai Pr. Commissioner of Income Tax Mumbai- 5. Director of Income Tax International Taxation - II Vs. Rolls Royce Industrial Power India Ltd. 2017 (5) TMI Delhi High Court dated 18.05.2017 6. Satnam Overseas Ltd. Vs. Additional Commissioner of income Tax 2009 (12) TMI 543 Delhi High Court dated 11.12.2009 7. Jal Hotels Co. Ltd. Vs. Asstt. DIR of Income Tax 2009 (5) TMI 24- Delhi High Court dated 25.05.2009 8. Nuclear Power Corporation of India Limited Vs. Deputy C....
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....ks and other evidence, 85 while Explanation (1) may not lead to an automatic presumption of disclosure, unless there is some fresh tangible material available with the AO, he will not be able to show that there was a failure on the part of a Assessee to disclose fully and truly all material facts. If the material is that which was already available during the original assessment proceedings, the AO will be unable to show that there has been a failure 18 by the Assessee to disclose fully and truly all material facts, 26. The expression "will not necessarily amount to disclosure as used in Explanation 1 to Section 147 of the Act brings in an element of subjectivity and also the requirement of assessing on a case-to-case basis where in fact there has been a full disclosure by virtue of the Assessee producing the account books and other evidence in the first instance. This explanation, therefore, would not relieve the AO of the burden of demonstrating the Assessee's failure to make a full and true disclosure of all material facts necessary for the assessment for the AY in question. 27. A second aspect of the matter is that the above jurisdictional requirement should be shown to....
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....erusal of P&L A/c, it is noticed that appellant firm itself has shown income of export incentive and foreign exchange fluctuation under the head "Other Income" which clarifies that it is not a profit of income derived from business of manufacture or production of article or thing. It proves that appellant has wrongly claimed the same as deduction u/s 80-IC of the Act and has not disclosed fully and truly all material) facts necessary for assessment. The appellant firm has not disclosed fully and truly all material facts necessary for assessment and as per provision of section 80-IC of the Act. The appellant firm has manipulated the facts which resulted in escapement of income chargeable to tax under the Income Tax Act. The duty drawback and exports incentive cannot be regarded as profit derived from operational activities of the industrial undertaking. The Hon'ble Supreme Court in case of M/s Liberty India Vs CIT (2009) 317 ITR 218 has categorically held that duty drawback receipt/DEPB benefit do not form part of the net profit of eligible industrial undertaking for the purpose of section 80I/80- IA/80-IB of the Income Tax It is observed that appellant firm has misinterpret....