A.T. KEARNEY INDIA Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) This writ petition is directed against the notice dated 27.03.2012 issued under Section 148 of the Income-tax Act, 1961 in respect of the assessment year 2008-09. The reasons given for the re-opening were inter alia based on the scrutiny proceedings of the very same petitioner for the assessment year 2009-10. The issue pertains to the high level of operating profits and the consequent alleged excessive deduction taken by the petitioner / assessee under Section 10A of the said Act.

(2.) The petitioner had filed its objections and the Assessing Officer passed an order rejecting the objections. In that order the Assessing Officer specifically noted that the fact that the assessee was claiming excessive deduction, as above, under Section 10A surfaced for the first time during the assessment proceedings for assessment year 2009-10 in the case of the petitioner itself. It was also noted that while going through the income tax return details for the subject year it was observed that here also the petitioner / assessee had adopted the same mechanism and had thus claimed excessive deduction under Section 10A of the said Act. According to the Assessing Officer, these findings constituted the new tangible material on record which was the basis for the reason to believe that income by way of excessive deduction under Section 10A had escaped assessment and that it was not a case of mere change of the opinion. It was also pointed out in the order rejecting the objections that the assessee had also not been able to distinguish as to how the facts of assessment year 2008-09 were different from those of assessment year 2009-10. It was concluded by the Assessing Officer that, where all other things remain the same, the inference drawn during the assessment proceedings for assessment year 2009-10 with respect to the excessive deduction claimed under Section 10A of the said Act was equally applicable in respect of the assessment year 2008-09.

(3.) We are now informed by the learned counsel appearing on behalf of the petitioner that the appeal in respect of the assessment year 2009-10 being ITA No. 348/Del/2013 has been allowed by the Income Tax Appellate Tribunal, New Delhi. Apart from the observations on law, on facts it has been held by the Tribunal as under:-