The reassessment proceedings may be initiated on one ground but the reassessment may be done on any other grounds too

ITAT, Mumbai

ACIT vs Mahalaxmi Chemical Works

IT Appeal Nos. 2258 to 2260 and 2436 to 2438 (Mum.) of 2003

17 February 2006

ORDER

Per Bench

1. These are the appeals filed by assessee as well as Revenue against the order of the Learned CIT(A).

2. The Revenue in its appeals in ITA Nos. 2258, 2259 and 2260/Mum./2003 for assessment years 1995-96, 1996-97 and 1998-99, has raised the following grounds :

Grounds of appeal in ITA No. 2258/Mum./2003

(i) On the facts and in the circumstances of the case and in law, the learned Commissioner of Income-tax (Appeals) has erred in directing the Assessing Officer to exclude amount of sales tax and L/C opening charges from the total turnover for computing the deduction under section 80HHC.

(ii) On the facts and in the circumstances of the case and in law, the learned Commissioner of Income-tax (Appeals) has erred in directing the Assessing Officer to reduce the net profit declared by the assessee by the net amount of excise duty paid (total amount paid less the amount of refund received) and to consider the profits so arrived to adopt as the ‘profit of the business’ for computing deduction under section 80HHC.