TaxTMI 
TaxTMI 
2025 (3) TMI 1805
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....)"), arising out of the reassessment order passed under section 147 r.w.s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Year 2010-11. 2. Brief facts of the case is that the assessee is a company engaged in manufacturing of Chemicals & Refrigerant Gases. For the Asst. Year 2010-11, assessee filed its Return of Income on 30-09-2010 declaring total income of Rs. 1,38,49,07,600/- after claiming deduction under chapter VI of Rs. 39,95,65,655/-. The assessee filed a revised return on 31-03-2012 declaring total income of Rs. 1,38,40,35,980/- and Book profit of Rs. 4.07 crores. The return was selected for scrutiny and assessment order u/s. 143(3) was passed on 22-02-2013 determining....
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....9509 164579509 5 Captive Power Plant, Dahej 01/07/2006 (AY 2007-08) 2009-10 (-)8601021 Nil Nil 6 Coal Based Power Plant- Dahej 25/06/2009 (AY 2010-11) 2010-11 (-)101136491 Not claimed Nil 7 Captive Power Plant 28/05/2005 (AY 2006-07) 2007-08 25846129 25846129 Nil AY Loss of Wind power unit sadiya Loss of Wind power unit Gude Panchgani 2007-08 Nil 808599343 2008-09 Nil 56654370 2009-10 690387824 316928121 Total 690387824 1632181834 In view of the section 80IA(5) of the IT Act, assessee had to adjust the notional brought forward losses from A.Y. 2007-08 to A.Y. 2009-10 before claiming deduction in A. Y. 2010-11. Af....
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....d as follows: AY Loss of Wind power unit sadiya Loss of Wind power unit Gude Panchgani 2007-08 Nil 808599343 2008-09 Nil 56654370 2009-10 690387824 316928121 It is clear from table (supra) that after setting off of notional brought forward loss against the profit of A.Y. 2010-11, there is no profit remained for claiming deduction u/s 80IA of the IT Act, 1961. In view of the section 80IA(5) of the IT Act, assessee had to adjust the notional brought forward losses from A. Y. 2007-08 to A. Y. 2009-10 before claiming deduction in A.Y. 2010-11. Therefore, the assessee is not eligible to claim deduction u/s 80IA. Hence the same is disallowed. 3. Aggrieved against the re-assessment order, as....
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....round, the notice issued u/s. 148 of I.T. Act is held to be illegal and bad in law, accordingly deserve to be quashed. As a result, ground no.1 is allowed." 4. Aggrieved against the appellate order, Revenue is in appeal before us raising the following Grounds of Appeal: 1. "Whether on the facts and circumstances of the case and in law, Ld. CIT(A) is justified in holding that re-assessment proceeding were illegal and bad in law and deserve to be quashed?" 2. Whether on the facts and circumstances of the case and in law, Ld.CIT(A) is justified in not appreciating that reopening of the case after expiry of four years as per provisions of section 148 of the Act was valid and reasons recorded by Assessing Officer expresses t....
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....failure on the part of the assessee in disclosing income truly and fully. Hence the question of Explanation 1 to Section 148 does not arise in the above case. Thus the reopening of assessment is not well within the provisions of the Act by the Assessing Officer, therefore the entire reassessment is liable to be quashed. Thus the findings arrived by Ld. CIT(A) does not require any interference. 5.1. Even on merits of the case, the Hon'ble Madras High Court in the case of Velayudhaswamy Spinning Mills (P.) Ltd. (cited supra) held as follows: "Under section 80IA(1), deduction is given to eligible business and the same is defined in sub-section (4). Sub-section (2) provides option to the assessee to choose 10 consecutive assessm....