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2014 (8) TMI 169 - HC - Income TaxInterest income from sale of securities - Accrual of interest income received as a transferor for Hindustan Steel - Held that:- It was as far as back as on 2 January 2001 that the petitioner had made an application to the CBDT seeking condonation of delay and consideration of its application for refund of the TDS of ₹ 32,71,118/-, on merits - petitioner had clearly pointed out the complete nature of the transaction including the fact that the gross amount (including TDS amount) had been paid over by them to Hindustan Steel - The application before the CBDT is still pending - there is no interest income earned by the petitioner on the sale of securities - the interest income which belongs to Hindustan Steel cannot be brought to tax in the hands of the assessee - petitioner has not earned the income as owner and/or holder of securities which had been already sold to Hindustan Steel - The petitioner had received the interest amount in its capacity as a registered holder and/or as a transferor for Hindustan Steel - no income as interest on account of securities has been earned by the petitioner in respect of the interest received on 8 June 1996 on the securities which were already sold to Hindustan Steel. Notice for reopening of assessment u/s 148 - Time-barred notice – Held that:- Notice has been issued beyond the period of 4 years from the end of the relevant AY - where the assessment which is completed u/s 143(3) of the Act is sought to be reopened beyond the period of 4 years, from the end of the relevant AY, then AO acquires jurisdiction to issue notice for reopening only on the satisfaction of the conditions - interest income received on the securities on 8 June 1996 was never claimed as the petitioner's income is also borne out by its communication dated 2 January 2001 to the CBDT in its application u/s 19(2)(b) of the Act, the occasion to disclose the same never arose - there was no occasion for the petitioner to disclose receipts which was not its income and therefore, not necessary for its assessment – it cannot be said that there was failure on the part of the petitioner to make a full and true disclosure for the purposes of its assessment – there could be no reason to believe that income chargeable to tax has escaped assessment – the order is set aside – Decided in favour of assessee.
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