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2009 (12) TMI 625 - ITAT, AHMEDABADReopening of assessment - electrical labour contract- dis-allowance of opening capital, expenses - addition of unsecured loans - Held that:- Return filed by an assessee could not be said to be pending before A.O. as he is not statutorily required to conclude those proceedings. Merely because the Assessing Officer is prohibited from issuing notice under section 143(2) after twelve months of filing of the return, it does not mean that proceedings commenced with filing of a return, are pending before him. Moreover, so long as the ingredients of section 147 are fulfilled, the Assessing Officer is free to initiate proceeding under section 147 and failure to take steps under section 143(3) will not render the Assessing Officer powerless to initiate reassessment proceedings even when intimation under section 143(1) had been issued. It is therefore, held that issuance of notice under section 148 was valid as it was within four years of the assessment year in question and is covered by Explanation 2 to section 147. Regarding the merits of the case, sinec the assessee has failed to furnish any evidence regarding cash credits, therefore the addition was justified. Regarding opening capital, to meet the ends of justice some relief is granted to assessee. Decided partly in favor of Assessee.
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