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2012 (9) TMI 396 - GUJARAT HIGH COURTValidity of notice dated 11.03.2002 issued u/s 148 purporting to reopen assessment of AY 1995-96 on principal objection of AO that deduction u/s 57(iii) is not available in respect of interest on the funds borrowed for purchasing shares for investment - Held that:- It cannot be stated that the assessee failed in his duty. Assessee had dis-closed primary facts in the returns filed, making requisite disclosure about the investments as well as the interest paid for borrowings for making such investments. Further, AO had raised certain queries about borrowings and the interest paid thereon and the dividend earned. The assessee, on both the occasions, supplied necessary material through letters and documents produced on record. Thus, during the scrutiny assessment proceedings, the AO was actually aware about the claim of the assessee u/s 57(iii). Hence, there was no failure on the part of the assessee to disclose fully and truly all material facts, necessary for assessment. The notices for reopening the assessments beyond a period of four years, from the end of the relevant AY fails on this ground alone - Decided in favor of assessee.
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