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2010 (10) TMI 851 - GUJARAT HIGH COURTReassessment proceedings - AO had not deducted the capital receipt from the block of assets while making computation of income – Held that:- The facts on record clearly reveal that this is the third round of litigation in respect of the same subject-matter. Before issuing the notice for reopening, reasons were recorded wherein it is clearly stated that the AO without applying his mind, in this aspect of the issue, accepted the claim of the assessee. If the material facts are disclosed by the petitioner truly and fully and if the AO did not apply his mind it is not fault of the petitioner which can lead the AO to issue notice of reopening within the period of 4 years. The reasons recorded further reveal that the AO had not deducted the said capital receipt from the block of assets while making computation of income. Here also it is not alleged that there is failure on the part of the assessee to disclose all material facts truly and fully and if the mistake is committed by assessee (sic AO), on this basis notice of reopening cannot be issued, especially when all throughout all necessary facts are on record and several proceedings were initiated in the past in respect of the same subject-matter - the action of the AO in issuing the notice of reopening, in the background of all previous proceedings initiated by the Revenue, is not justified.
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