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2011 (12) TMI 229 - HC - Income TaxValidity of reopening of assessment previously framed after scrutiny beyond 4 years from the end of relevant A.Y. - assessment reopened on ground of non-deduction of tax at source u/s 195 and consequent dis-allowance u/s 40(a)(i) – A.O. at the insistence of the audit party had issued notice for reopening - audit party after bringing the relevant aspects to the notice of the AO, held correspondence with the assessee and accepted assessee's explanation of non-requirement of deduction of tax at source – Held that:- In the present case, the Assessing Officer had categorically come to the conclusion that the objection of the audit party is not valid and that the assessee's explanation with respect to nonrequirement of collection of TDS was required to be accepted. In that view of the matter, we have no hesitation in striking down the notice for reopening. Consequently, the order rejecting the objections of the petitioners must also go. In the result, the petition is allowed.
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