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2011 (8) TMI 314 - HC - Income TaxReopening of the assessment - It is not necessary that the assessment should have been completed under Section 143(3) of the Act before it could be reopened. - Explanation 2(b) to section 147 specifically provides the cases where the Assessing Officer noticed that the assessee has understated the income in the return of income. The word 'noticed' used in Explanation 2(b) of section 147 of the Incometax Act is vital and significant in the sense that there should be some basis upon which the belief can be built by the Assessing Officer. - in the relevant year, there was loss to assessee and the expenses for business were claimed by the assessee which were earlier allowed by the AO. There was no other material for the AO for reopening of the assessment and found that the reopening of the assessment on the same material - Reopening of assessee is unjustified.
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