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2018 (1) TMI 1284 - ITAT KOLKATAReopening of assessment - eligible reasons to believe - allowability of deduction on account of diminishing in value of investments - Held that:- While concluding the original assessment proceedings the AO raised queries on issues which were recorded by the AO in the reasons for initiation of re-assessment proceedings. The AO while completing the original assessment proceedings did not make any reference or give any reasons for accepting the answer of the assessee to the issue but did not make any addition. In the given circumstances the AO may be held to have applied his mind on this issue and thereafter allowed the claim of the assessee. It cannot therefore be said in the present case that the AO while completing the original assessment did not consider the issue with regard to the allowability of deduction on account of diminishing in value of investments. The arguments of the ld. DR in this regard is therefore not accepted. The conditions to be satisfied for validity of reassessment proceedings by the first proviso to section 147 of the Act are not satisfied in the present case. In conclusion we hold that there is no merit in this appeal by the revenue and the order of CIT(A) does not suffer from infirmity. Order of CIT(A) is therefore confirmed and the appeal of the revenue is dismissed.
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