IN THE HIGH COURT OF DELHI AT NEW DELHI
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ITA 230/2012 and C.M. No.6442/2012 (for condonation of delay)
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CIT ..... Appellant
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Through: Mr. N.P. Sahni, Advocate.
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versus
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KEANE INDIA LTD ..... Respondent
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Through: Mr. Shashi M. Kapila and Mr. Pravesh
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Sharma, Advocates.
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CORAM:
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HON'BLE MR. JUSTICE SANJIV KHANNA
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HON'BLE MR. JUSTICE R.V.EASWAR
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O R D E R
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20.04.2012
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We need not go into the merits of the matter relating to
computation of deduction under Section 10A of the Income Tax Act, 1961
(?Act?, for short) and whether it is to be done before or after taking
into account the brought forward losses and depreciation.
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2. In the present case, the Income Tax Appellate Tribunal (?Tribunal?,
for short) has given a finding that it is a case of change of opinion
and, therefore, the re-assessment proceedings under Section 147 of the
Act are bad. We notice that the CIT (Appeals) has recorded that during
the course of the appellant proceedings, the assessee had furnished
copies of documents as per details given below :-
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?Documents pertaining to original assessment
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i. Submission dated 5-7-2005
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ii. Submission dated 27-1-2006
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iii. Submission dated 16-3-2006
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iv. Submission dated 22-3-2006
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v. Audited financial statements 23-3-2006
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vi. Order u/s 143(3) dated 27-3-2006
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vii Order u/s 154 dated 01-5-2006
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Documents pertaining to reassessment
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i. Submission dated 8-5-2008
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ii. Submission dated 3-10-2008
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iii. Submission dated 14-10-2008
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iv. Notice and reasons recorded to initiate reassessment proceedings u/s
148 dated 25.3.2008.?
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3. The CIT (Appeals) further records that he had seen submissions
dated 16.3.2006, 22.3.2006 and 23.3.2006 on the question of deduction
under Section 10A of the Act and the computation was specifically dealt
with and examined at the time of original assessment. Thereafter, the
Assessing Officer wanted to invoke power under Section 154 to rectify the
original assessment order on the ground that he had committed a mistake
or error at the time of the original assessment. The said proceedings
were dropped on the ground that this issue was debatable. The fact,
however, remains that the Assessing Officer had dealt with and examined
the question of computation of deduction under Section 10A and as then
only he would have invoked Section 154 of the Act.
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4. Learned counsel for the appellant submitted that the legal issue on
merit has not been specifically answered or debated upon in the original
assessment order. In this case queries and questions regarding
computation of deduction under Section 10A were raised by the Assessing
Officer and were answered by the assessee at the time of original
assessment. Failure or mere absence of finding or averment in the
assessment order is not material. The assessment order is authored by
the Assessing Officer. The assessee cannot compel and prevail upon the
Assessing Officer to write the order in a particular manner. In CIT vs.
Eicher Ltd. (2007) 294 ITR 310 (Del), it was held as under: -
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??16. Applying the principles laid down by the Full Bench of this Court
as well as the observations of the Punjab and Haryana High Court, we find
that if the entire material had been placed by the assessed before the
Assessing Officer at the time when the original assessment was made and
the Assessing Officer applied his mind to that material and accepted the
view canvassed by the assessed, then merely because he did not express
this in the assessment order, that by itself would not give him a ground
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to conclude that income has escaped assessment and, Therefore, the assessment needed to be reopened. On the other hand, if the Assessing
Officer did not apply his mind and committed a lapse, there is no reason
why the assessed should be made to suffer the consequences of that lapse.
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17. In so far as the present appeal is concerned, we find that the
assessed had placed all the material before the Assessing Officer and
where there was a doubt, even that was clarified by the assessed in its
letter dated 8th November, 1995. If the Assessing Officer, while passing
the original assessment order, chose not to give any finding in this
regard, that cannot give him or his successor in office a reason to
reopen the assessment of the assessed or to contend that because the
facts were not considered in the assessment order, a full and true
disclosure was not made. Since the facts were before the Assessing
Officer at the time of framing the original assessment, and later a
different view was taken by him or his successor on the same facts, it
clearly amounts to a change of opinion. This cannot form the basis for
permitting the Assessing Officer or his successor to reopen the
assessment of the assessed??
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5. In view of the aforesaid position, we dismiss the appeal on the
ground that it is a clear case of change of opinion. We note that we are
not examining the question of computation of deduction under Section 10A
of the Act on merits in this appeal.
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SANJIV KHANNA, J.
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R.V.EASWAR, J.
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APRIL 20, 2012
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?AA?
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$ 48
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