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2013 (4) TMI 264 - AT - Income TaxRe opening of assessment - assessee's objection to reopening that all details with regard to advertisement expenditure had been submitted during the course of regular assessment u/s 143(3) - CIT(A) quashed notice for reopening - Held that:- It is evident that the assessee has disclosed all the relevant facts in the original assessment itself. The advertisement expenses which were capitalized in the books of account were claimed as revenue expenditure in the return of income. Therefore, the assessee made a legal claim in the return of income which was accepted by the AO in the original return. From the above reasons recorded, it is evident that there was no failure on the part of the assessee to disclose fully and truly all material facts. The CIT(A) has allowed the relief to the assessee following the decision of of Atma Ram Properties Pvt.Ltd. Vs. DCIT (2011 (11) TMI 51 - DELHI HIGH COURT) that in order to initiate proceedings for reassessment after four years, there should have been a failure on the part of the assessee to disclose material facts necessary for assessment. If the Assessing Officer had failed to apply legal provisions/section of the Income-tax Act, 1961, the fault cannot be attributed to the assessee. CIT(A) has rightly quashed the reassessment proceedings - in favour of assessee.
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