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2012 (11) TMI 939 - AT - Income TaxValidity of initiation of reassessment proceedings – Held that:- There is no allegation by the Assessing Officer that income has escaped assessment by reasons of failure of the assessee to disclose material facts fully and truly. Since, reassessment proceedings were being initiated after expiry of 4 years from the end of assessment year, this was condition precedent for valid initiation of reassessment proceedings - reopening of assessment beyond the period of four years could not be sustained Reopening on the ground of non deduction of TDS - Payments to foreign parties for licence to use of software - view taken by the Department that it is mandatory for the assessee to Deduct Tax at Source on such payments for licence to use software as they are in the nature “Royalty” - assesses has made payments to foreign parties for licence to use of software – Held that:- there could be no reassessment either on the basis of a subsequent decision of the Tribunal or on the Assessing Officer’s own interpretation. In either case, it would be a mere change of opinion, so that the notice was not valid. Disallowance under section 40(a) of the Act – Held that:- Since the initiation of reassessment proceedings have been held to be invalid and the orders of reassessment have been annulled - it is not necessary to deal with the appeals of the revenue on merits - appeals dismissed
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