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2013 (5) TMI 21 - GUJARAT HIGH COURTRe opening of assessment - failure to deduct TDS on commission payment - Held that:- No hesitation in believing and upholding the petitioner’s factual assertion that during the previous year relevant to the assessment year under consideration, the petitioner had not paid any commission as even at the time of issuing notice such contention had formed part of the objection raised by the petitioner before the AO also & despite such stand of the petitioner from the outset, the respondent has totally failed in dislodging this clear and unequivocal factual assertion, therefore, there was no question of deducting tax at source. The entire basis for issuance of impugned notice thus lack validity. As decided in in case of Ratna Trayi Reality Service Pvt. Ltd. [2013 (4) TMI 677 - GUJARAT HIGH COURT] as relying on ACIT vs. Rajesh Jhaveri Stock Brokers P. Ltd. [2007 (5) TMI 197 - SUPREME Court] it is equally well settled that merely because an assessment was not previously framed after scrutiny, would not give unlimited right to the Assessing Officer to reopen by merely issuing a notice without valid reasons. Even in case of reopening of an assessment which was previously accepted under section 143(1) of the Act without scrutiny, the Assessing Officer would have power to reopen the assessment, provided he had some tangible material on the basis of which he could form a reason to believe that income chargeable to tax had escaped assessment. In favour of assessee.
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