Law:

Section:

JUDGMENT Akil Kureshi J.- The petitioner has challenged a notice dated March 21, 2006, issued by the respondent-Assessing Officer under section 148 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). Under such notice, he proposed to reopen the assessment of the petitioner for the assessment year 1999-2000, which was framed after scrutiny. The notice was, thus, issued beyond the period of four years from the end of relevant assessment year. 2. The Assessing Officer had recorded the following reasons for issuance of notice : "In this case, the return of income declaring a total income at Rs. 68,09,01,730 was filed on December 29, 1999. The assessment under section 143(3) of the Income-tax Act was completed on March 30, 2002, determining the total income at Rs. 92,07,62,670, which was revised at Rs. 69,17,49,861 as a result of the Commissioner of Income-tax (Appeals)-VI, Baroda, order dated April 30, 2004. 2. The assessee has amortized GDR (global depository receipts) issue expenses over a period of 10 years and debited Rs. 87.73 lakhs (being one-tenth of the total expenditure on GDR issue) to its profit and loss account for the financial year 1995-96 onwards. No adjustment has been made in the statement of the total income, in this regard, thereby treating the expenses as deductible under section 35D as mentioned in clause No. 2. 3 of the notes forming part of the return of income. In this regard, during the course of the reassessment proceedings for the assessment year 2000-01, it was seen that part of the GDR issue was used for making investments, which includes the investment of Rs. 96.62 crores in UTI. On scrutiny of clause 5 of schedule 6 to the balance-sheet (page 20), investments in UTI and other funds mentioned at Rs. 96.64 crores. As such, the assessee has not utilized the full amount of the GDR issue for the purpose of investment in the new project. Hence, the admissible deduction per year was worked out at Rs. 13,50,000 on the basis of 2.5 per cent. of the cost of project for which the assessee had utilized the proceeds of the GDR issue. Thus, the assessee has claimed the excess deduction under section 35D of the Act in the assessment…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492