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2013 (2) TMI 290 - BOMBAY HIGH COURTReopening of assessment - AO alleged that complete facts related to investment activity in India and SEBI guidelines have not been disclosed by the assessee - income on sale of shares is chargeable to tax under the head "capital gains" and not "business income" - Tribunal quashed reassessment orders - Held that:- Re-opening was issued on 31st March 2010 which is beyond a period of four years from the end of the relevant assessment year 2003-2004 and the reasons recorded for re-opening the assessment does not allege that there has been any failure on the part of the respondent-assessee to disclose fully and truly all material facts necessary for the purpose of assessment. Therefore, the notice is not sustainable. Set off of business loss against Income from other sources where income from business is not liable to tax in India in the absence of PE in India - held that:- Even on merits the ruling of Authority for Advance Ruling in the assessee's case would not be over-ruled by subsequent decision of the Authority for Advance Ruling in the case of another assessee. Consequently, initiation of action under Section 263 for assessment years 2004-2005 and 2005-2006 was quashed on the ground that the assessment order could not be said to be prejudicial to the Revenue or erroneous as the assessing officer was merely following a binding ruling of the Authority for Advance Ruling. ITAT relies upon the aforesaid facts and holds that the re-opening of assessment is not justified, as the finding of the Authority for Advance Ruling in the assessee's own case will continue to govern the assessee's assessments. This is particularly so as there has been no change in the law - in favour of assessee. Decision in [The Prudential Assurance Company Ltd. Versus 1. The Director of Income-tax (International Taxation) 2. The Union of India (2010 (4) TMI 237 - BOMBAY HIGH COURT)] followed.
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