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| The Tax Publishers2020 TaxPub(DT) 4486 (Karn-HC) INCOME TAX ACT, 1961
Section 147
Where pursuant to survey under section 133A, it was found that deduction under section 80-IA was not available to assessee and reopening of assessment was made by issuing notice under section 148, Tribunal, in a cryptic and cavalier manner, was not justified in holding that, during the course of survey under section 133A no material was found and reopening of the assessment was not valid in law.
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Reassessment - Validity - Pursuant to survey under section 133A, it was found that deduction under section 80-IA was not available to assessee -
Assessee-company was carrying on the business of manufacture and supplying ACSR conductors for transmission/distribution of power lines. It was claiming deduction under section 80-IA. AO initiated reassessment proceedings by issuing notice under section 148 on allegation that in view of material detected pursuant to survey action, it was found that manufacturing unit of assessee was more than 20 years old unit and same was not a new industrial undertaking as claimed by the assessee. Held: Tribunal, in a cryptic and cavalier manner, found that during the course of survey under section 133A no material was found and reopening of the assessment was not valid in law. It was pertinent to mention that it was admitted on behalf of the assessee in the statements recorded under section 131 that the manufacturing unit (at Tumkur) was an old unit and the claim of deduction under section 80-IA was not correct and assessee itself had withdrawn claim under section 80-IA for assessment year 2001- 02. Tribunal erred in holding that the reopening of the assessment under section 147 was beyond 4 years and was barred by limitation.
REFERRED : CIT v. Kelvinator of India Limited (2010) 320 ITR 561 (SC) : 2010 TaxPub(DT) 1335 (SC) and CIT v. Deepak Cables (India) Ltd. [ITA NO.205/2008, dt. 3-6-2014].
FAVOUR : Against the assessee.
A.Y. : 1998-99
IN THE KARNATAKA HIGH COURT
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