Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (3) TMI 517 - AT - Income TaxValidity of reopening of assessment - Held that:- Audit party has not pointed out any factual error or omission but has expressed the opinion on the analysis of the balance sheet of one of the two concerns of the assessee that the interest paid by the assessee needs to be disallowed because the borrowed funds were diverted by providing interest free loans to others. The audit objection is based upon the legal opinion expressed by them and not pointing out any factual error or omission and, therefore, on these facts, the decision of Xerox Modicorp Ltd. (2013 (1) TMI 160 - DELHI HIGH COURT) in the case of Air India (1994 (10) TMI 33 - BOMBAY HIGH COURT) and of Indian Eastern and Newspaper Society (1979 (8) TMI 1 - SUPREME COURT) would be applicable as no opersiion has been pointed but only legal opinion given thus to hold that the reopening of assessment was not valid. The same is quashed and the cross-objection of the assessee is allowed.
|