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2019 (6) TMI 753 - MADRAS HIGH COURTRe-assessment proceedings u/s 147 - unexplained borrowal of funds as well as deployment of such funds - interest free loans to its group companies - disallowance u/s 36(1)(iii) - ITAT confirmed reopening proceedings as agreeing with the CIT(A)'s findings - HELD THAT:- With regard to the allegation that there was change of opinion, the CIT(A) rightly held that there is no original assessment under Section 143(3) of the Act and therefore, the restriction imposed by the proviso to Section 147 will not come to the rescue of the assessee. The factual findings recorded by the assessing officer and the CIT(A) could not be dislodged by the assessee before the Tribunal, which is the last forum, which can re-appreciate the factual matrix. The Tribunal, after considering the assessee's case and the materials placed before it, took out the apparent facts, the financial statements, the concept of same management and chain holding of shares and tax adjustments, agreed with the CIT(A)'s findings and held that there was no reason to interfere with the order of the CIT(A). The pattern of management of the three companies was also examined by the Tribunal as well as the contention advanced by the assessee that the assessment proceedings u/s 147 was a change of opinion. This point was also rejected by the Tribunal on a perusal of the facts. Further, the Tribunal held that the increase in unsecured loans and assessee's company income was not from business activity but only out of redemption of mutual funds. No question of law - Decided against assessee.
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