The article delves into a case where the Commissioner directed a reassessment of the assessee’s claim under Section 10A, questioning the eligibility of deductions related to technical services outside India. Subsequent developments, including the Assessing Officer’s fresh assessment order and the pending appeal before the Tribunal, are analyzed.
Background and Initial Assessment:
- Regular assessment concluded with the allowance of Section 10A deduction.
- Commissioner’s intervention under Section 263 led to a re-examination of the claim.
Fresh Assessment and Disallowances: - Assessing Officer’s new assessment resulted in additional disallowances.
Exclusion of foreign currency expenses from export turnover for services outside India. - Confirmation of disallowances by the Commissioner (Appeals).
Unraveling Reassessment Proceedings: - Despite a pending appeal before the Tribunal, a notice under Section 148 is issued.
- Examination of tangible material, including MSAs, Works contracts, and invoices.
- Critical analysis of whether reassessment amounts to impermissible review.
Legal Implications and Conclusion: - Evaluation of the legal premise for reassessment under Section 147.
- Discussion on whether the notice reflects a change of opinion, impermissible in law.
- Emphasis on the incomplete tangible material and its impact on the reassessment.
II. Section 147 and Pending Tribunal Appeals: Legal Conundrum
Bar under Third Proviso to Section 147 and Its Impact
This section explores the legal intricacies surrounding a notice under Section 148 when appeal proceedings are still pending before the Tribunal. Analyzing the third proviso to Section 147, the article questions the legal validity of the reassessment notice.
Legal Framework and Appeal Proceedings:
- Understanding the legal provision of Section 147 and the third proviso.
- Pendency of appeals before the Tribunal regarding the issue in question.
Evaluation of Reassessment Notice:
- Critical examination of the reassessment notice issued under Section 148.
- Assessment of the legal impediment posed by the third proviso to Section 147.
Conclusion:
- Analysis of the legal implications of the third proviso to Section 147.
- The necessity of setting aside the reassessment notices for the mentioned assessment years.
- The impact on orders rejecting the assessee’s objection to the jurisdiction of the Section 148 notice.
