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2017 (6) TMI 1182 - AT - Income TaxReopening of assessment - Held that:- In the present case, for the AY 2008-09, a perusal of the reasons recorded shows that neither fresh information was in the possession of the AO nor the AO has recorded anywhere that the income of the assessee escaped assessment by stating the reasons of failure on the part of the assessee to disclose fully and truly of material facts necessary for his assessment for that AY. This being so, we are of the view that the re-opening by the AO upheld by the Ld.CIT(A) is unsustainable and the re-opening has been done only on the basis of a change of opinion, which is impermissible. In these circumstances, the reopening of the assessment is held to be bad in law and consequently quashed. Disallowance of the deduction u/s.36(1)(viia) - Held that:- A perusal of the order of the Ld.CIT(A), in the present appeal clearly shows that the Ld.CIT(A) has only confirmed the order of the AO in the regular assessment and has also confirmed his proposal for enhancement by restricting deduction liable u/s.36(1)(viia) of the Act without dealing with the objections raised by the assessee. This being so, in the interest of natural justice, the entire gamut of the claim of deduction u/s.36(1)(viia) is restored to the file of the Ld.CIT(A) for re-adjudication de novo after granting the assessee adequate opportunity of being heard.
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