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2012 (12) TMI 449 - HC - Income TaxRe-assessment Proceedings - Tribunal quashed reassessment - Held that:- Considering the history of litigation in the present case, it cannot be argued that the assessee did not make full disclosure or withhold any material particulars. This is specially so in the case of assessment years 2002-03 and 2003-04. What appears to have persuaded the Tribunal to uphold the reassessment proceedings for those years was the circumstance that the assessments were initially completed under Section 143(1). However, such is not the case with the subsequent assessment orders, i.e. 2004-05 and 2005-06. This was done after full application of mind under Section 143(3). Thus no infirmity with the order of the Tribunal so far as it held that the reopening of proceedings under Section 147 and 148 was unwarranted for the assessment years 2004-05 and 2005-06 - in favor of the assessee. Interest on borrowed Capital - Held that:- On an analysis of the balance sheet it can be viewed that the assessee is able to demonstrate, utilization of funds for the purpose of the construction. Learned revenue authorities without specifying any reason refused to take cognizance of the balance sheet of the partners. The order of the Tribunal extensively considered the submissions made on behalf of the parties and its reasoning for all the years in respect of the interest claimed for deduction under the head of “interest” is explained. Since the Tribunal constitutes the final court of fact, nothing new has been brought to the notice of this Court to warrant the conclusion that the inference drawn by the Tribunal on the materials available were unreasonable or perverse - in favor of the assessee. Applicability of Sec 45(4) - Held that:- Tribunal noticed difference of opinion in the decisions of various High Courts. Since parties have not advanced any argument on this aspect, therefore, in absence of any finding - allow this ground of appeal raised by the assessee and held that no capital gain tax would be imposable upon it on account of alleged allegation of distribution of assets - in favor of the assessee.
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