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Commnr. Of Income Tax, Delhi vs M/S. Kelvinator Of India Ltd on 18 January, 2010

7. Now before us, learned D.R., strongly assailing the order of CIT(Appeals), submitted that in the original assessment completed on 16.5.2006, there was no consideration whatsoever regarding claim of the assessee under Section 80-IB of the Act, or the nature of business in which assessee was engaged. Nothing was mentioned in the assessment order regarding the claim of assessee under Section 80-IB of the Act. Not even Section 80-IB was mentioned by A.O. anywhere in the assessment order. Therefore, the Assessing Officer had never applied his mind on this aspect during the course of original assessment proceedings. He simply presumed that assessee was eligible under Section 80-IB of the Act and proceeded accordingly. No details were submitted by the assessee during the course of original assessment proceedings. Unless there was an opinion formed, there cannot be a change of opinion. According to him, decision of Hon'ble Apex Court in the case of Kelvinator of India Ltd. (supra) relied on by the CIT(Appeals) was misplaced since the question there was whether a reopening could be done based on a change of opinion. No doubt, as per the learned D.R., it was held by Hon'ble Apex Court that reopening could not be on a change of opinion. But, here since there was no opinion formed by the Assessing Officer at the time of original assessment proceedings. Thus, it was not a question of change of opinion at all. It was a total non- application of mind. Assessee was also not saved by Explanation to Section 147 of the Act since the reopening was admittedly done within 7 I.T.A. No. 700/Mds/2010 C.O. No. 100/Mds/2010 four years from the end of the relevant assessment year. Therefore, according to him, the re-assessment was perfectly done. As per learned D.R., assessments for earlier years were done under Section 143(1) of the Act summarily, and therefore, these could not be considered as a binding precedence, so as to accord similar deduction in the subsequent years also.
Supreme Court of India Cites 4 - Cited by 1696 - S H Kapadia - Full Document

Commissioner Of Income-Tax vs Veena Textiles Pvt. Ltd. on 4 January, 1984

Civil Appeal No.1775 emanated from the decision of jurisdictional High Court in T.C. No.146 of 1979 reported as CIT v. Veena Textiles (P) Ltd. (155 ITR 794). The other appeal emanated from the second case relied on by the learned D.R., the question raised before the Hon'ble jurisdictional High Court was whether assessee purchasing cloth and doing embroidery designs with machinery, could be considered as manufacturer or producer of textiles. Hon'ble jurisdictional High Court held that assessee was not indulging in any manufacturing activity and therefore, not entitled for higher rate of development rebate under Section 33(1)(b)(B)(i) of the Act. But, Hon'ble Apex Court while reversing this judgment of Hon'ble jurisdictional High Court, held that what assessee was doing was a manufacturing activity and it was entitled for development rebate.
Madras High Court Cites 9 - Cited by 6 - Full Document
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