BHAVESH DEVELOPERS Vs. ASSESSING OFFICER

JUDGEMENT

(1.) Rule. By consent of the Counsel and at their request, made returnable forthwith and taken up for hearing and final disposal.

(2.) The challenge in these proceedings under Article 226 of the Constitution of India, is inter alia to a notice issued under Section 148 of the Income Tax Act, 1961, seeking to reopen assessment proceedings. The relevant Assessment Year is 2002-03.

(3.) The Petitioner engages in the business of developing and constructing buildings. During the Assessment Year 2002-03, the Petitioner filed a return of income on 14th January 2004 and claimed a deduction of Rs. 3,85,75,992/- under Section 80-IB(10) of the Act. The return of income was initially processed under Section 143(1) and the declared income was accepted by the Assessing Officer. The case of the Petitioner was thereupon selected for scrutiny. Notices were issued under Sections 143(2) and 142(1) of the Act. In response, the Chartered Accountant of the Petitioner submitted representations on 30th November 2004 and 20th December 2004. On 17th January 2005, an assessment order was passed under Section 143(3). In so far as the deduction under Section 80-IB(10) was concerned, the Assessing Officer, while allowing the deduction, observed as follows: