DCIT Vs Visvas Promoters (P) Ltd. (Madras High Court)
Conclusion: Reassessment after period of four years on the ground that assessee had claimed excess deduction under Section 80IB(10) was not valid where assessee had made true and full disclosure and had consciously made only a proportionate claim under Section 80IB(10), which was rightly allowed by AO at the time of original assessment proceedings under Section 143(3).
Held: AO reopened assessment by issuing notice under section 148 beyond period of four years on the ground that assessee claimed excess deduction under Section 80IB(10) in respect of its Building Project V Block, which was required to be disallowed as the said building comprised of residential units over the prescribed limit of 1500 sq. ft. for each residential unit. Assessee failed to disclose all the relevant particulars for the said project about the difference of areas of residential units either below 1500 sq. ft. or over 1500 sq. ft. Therefore, there was a failure on the part of assessee to disclose all the relevant facts truly and fully and therefore, the limitation of 4 years for re-opening did not apply to the present case. It was held assessee had made true and full disclosure and had consciously made only a proportionate claim under Section 80IB(10) of the Act, which was rightly allowed by the Assessing Authority at the time of original assessment proceedings under Section 143(3). If the Assessee had anything to hide or make a wrong claim, then proportionate deduction under Section 80IB(10) of the Act would not have been claimed by him. Therefore after the expiry of 4 years in 2010, the impugned notice under Section 147/148 of for AY 2003-04 issued on 31.03.2010 was not a valid initiation of the re-assessment proceedings. Thus, proceedings was quashed.
