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2013 (5) TMI 660 - HC - Income TaxRe opening of assessment - no true and full disclosure on the part of the petitioner with respect to purchase of the Ship/Tug particularly in context of the petitioner’s claim for full depreciation @ 25% of the total value - Held that:- Present being a case of issuance of notice after four years from the end of relevant assessment year, and therefore, proviso to subsection (1) of Section 151 would apply. In such a case, irrespective of the level of AO issuing notice for reopening, a precondition of the Chief Commissioner or the Commissioner being satisfied on the reasons recorded by the AO that it is a fit case for issuance of such notice must be satisfied. This additional safeguard not only involves the application of mind on the part of the Chief Commissioner or the Commissioner but his satisfaction, which would be based on the reasons recorded by the AO, and such satisfaction should be that it is a fit case for issuance of the notice. Admittedly, in the present case, these requirements have not been fulfilled. What the Revenue however argues is that when the Commissioner had perused the suggestions of the audit party, the same should be seen as substantial compliance of such a requirement cannot be accepted. See CIT v. SPL’s Siddhartha Limited [2011 (9) TMI 640 - DELHI HIGH COURT]. Thus impugned notice for reassessment quashed.
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