Assessee carrying out work on job basis was not entitled to deduction under section 10B

IT : Where in original assessment proceedings assessee had, on a specific query raised by Assessing Officer, informed him that it was carrying out manufacturing/production activity on 'job work basis' and despite that Assessing Officer allowed deduction under section 10B, assessment could not be reopened on ground that assessee carrying out work on job basis was not entitled to deduction under section 10B
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[2014] 50 taxmann.com 57 (Delhi)
HIGH COURT OF DELHI
Swarovski India (P.) Ltd.
v.
Deputy Commissioner of Income-tax*
BADAR DURREZ AHMED AND SIDDHARTH MRIDUL, JJ.
W.P. (C) NO. 1909 OF 2013
AUGUST  8, 2014
Section 10, read with section 147, of the Income-tax Act, 1961 - 100 per cent export oriented undertakings (Reassessment) - Assessment year 2005-06
- Assessee claimed deduction under section 10B on ground that it was 100 per cent export oriented unit engaged in business of manufacturing/processing of raw beads into finished imitation pearls - In original assessment, Assessing Officer allowed deduction - Whether when during original assessment proceedings, assessee had, on a specific query raised by Assessing Officer, informed him that it was carrying out manufacturing/production activity on 'job work basis', there was no failure on part of assessee to fully and truly disclose material facts and, therefore, impugned notice and order were liable to be quashed - Held, yes [Paras 12 to 16] [In favour of assessee]