Scope of reassessment U/s. 147 in relation to doctrine of merger

From the reasons recorded, it is apparent that the Assessing Officer has reopened the assessment mainly on three grounds. Firstly, that the income referred to in the said ground viz., income from rent, export incentive, advance licence benefit receivable, pass book benefit receivable, exchange rate difference, refund of sales tax, refund of electricity duty, excess provision in respect of earlier years written back, sundry credit balances written back interest income, discount, miscellaneous, which had been taken into consideration for deduction under section 80IA of the Act, does not fall within the purview of “Profit derived from Industrial Undertaking” in view of the decision of the Supreme Court in the case of CIT v. Sterling Foods, 237 ITR 579 (SC) and CIT v. Hindustan Lever Ltd, 239 ITR 297 (SC) and as such the assessee has incorrectly claimed deduction under section 80I/80IA of the Act. Further that deduction under section 80IA is not allowable on “Income from other sources”. The second ground is that the excise refund, duty drawback and cash assistance which have been charged to tax vide section 28(iii((c) were required to be excluded while working out deduction under section 80/80IA of the Act in the light of the aforesaid decisions of the Supreme Court. The third ground is that for deduction under section 80HHC of the Act, 90% of the above income was required to be excluded which had not been done. Moreover, the excise duty paid and collected was not included in the total turnover while calculating deduction under section 80-HHC of the Act.