Reopening U/s. 147 invalid If Reason reasons recorded have not escaped assessment

Ranbaxy Laboratories Limited Versus CIT (Delhi High Court)- The Tribunal was right in holding that the Assessing Officer had the jurisdiction to reassess issues other than the issues in respect of which proceedings are initiated but he was not so justified when the reasons for the initiation of those proceedings ceased to survive. Consequently, we answer the first part of question in affirmative in favour of Revenue and the second part of the question against the Revenue.

IN THE HIGH COURT OF DELHI AT NEW DELHI

ITA No. 148/2008

Judgment reserved on : 2^nd MAY, 2011
Judgment delivered on : 3^rd JUNE, 2011

RANBAXY LABORATORIES LIMITED Versus COMMISSIONER OF INCOME TAX

JUDGEMENT
M.L. MEHTA, J.

1. The present appeal filed under Section 260A of the Income Tax Act, 1981 (hereinafter, for short ^„the Act^‟) is directed against the order of the Income Tax Appellate Tribunal (hereinafter, for short ^„Tribunal^‟) dated May, 2007 whereby the Tribunal upheld the validity of reassessment proceedings initiated under Section 147 of the Act. The Tribunal also confirmed the order of the lower authorities in denying deduction under Section 80-IA of the Act in respect of duty drawback, profit on sale of REP licences and cash assistance.