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2015 (7) TMI 1076 - AT - Income TaxDisallowance at rate of 20% of the distribution expenses - Held that:- The adhoc disallowance having been based on no seized material, The Tribunal in assessee's own case having deleted the disallowance under similar facts and circumstances of the case, following the decision in the case of ‘CIT V/s Ashim Krishna Mondal' (2004 (7) TMI 80 - CALCUTTA High Court ), no contrary decision having been placed before us grievance of the department is rejected. - Decided in favour of assessee Reopening of assessment - Held that:- Where there is no tangible material before the AO to come to the conclusion that the income has escaped assessment, even in a case where the return of income filed by the assessee has only been processed under section 143(1) of the Act, the completed assessment cannot be reopened. In the present casevidently, the reasons recorded for reopening the completed assessment of the assessee did not point out any material, tangible, or otherwise, as having come to the possession of the AO, so as to enable him to form the opinion that income had escaped assessment. Thus, it is only a case of recording the reasons for re-assessment sans any material for the formation of such a belief. Therefore, such reopening of the completed assessment is void abintio and unsustainable in law. The very initiation of the reopening process, therefore, cannot stand. It is cancelled. As a consequence, thereof, nothing more survives for adjudication - Decided in favour of assessee
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