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2011 (4) TMI 869 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - Held that: The AO must adopt a reasonable basis or method consistent with all the relevant facts and circumstances after furnishing a reasonable opportunity to the assessee to place all germane material on the record - The AO should determine as to whether the assessee had incurred any expenditure (direct or indirect) in relation to dividend income/income from mutual funds which does not form part of the total income as contemplated under section 14A - remit the matter back to the file of the AO with a direction decide the issue afresh in the light of judgment of GODREJ AND BOYCE MFG. CO. LTD. Versus DEPUTY COMMISSIONER OF INCOME-TAX AND ANOTHER [2010 (8) TMI 77 - BOMBAY HIGH COURT] - in favour of assessee for statistical purpose Re opening of assessment - non-convertible debentures write off against inter corporate deposits not charged to P/L A/c - Held that:- There is no additional material on record before the Assessing Officer to come to the above conclusion and reopening the assessment u/s 147 for the reason that the income of the assessee had escaped assessment. As decided in CIT vs. Kelvinator India Ltd.[2010 (1) TMI 11 - SUPREME COURT OF INDIA] that after 1st April, 1999 the Assessing Officer has power to reopen the assessment u/s 147 provided the Assessing Officer has reason to believe that the income has escaped assessment and there is a tangible material to come to the conclusion that there is an escapement of income. Mere change of opinion cannot per-se be the reason to reopen the assessment - in favour of assessee.
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