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2013 (6) TMI 628 - AT - Income TaxReopening of assessment - AO noticed that the assessee society's profits were diverted to the account of its General Secretary for construction of a building, wherein the General Secretary's proprietary business was being carried on - Held that:- There is sufficient force in the contention of the assessee that material facts are fully and truly disposed of by the assessee as evidenced by the two letters filed at the time of completion of original assessment. AO has raised certain queries in the original assessment and, in reply, the assessee has given details vide the aforesaid letters. The ratio laid down in the case of CIT Vs. Kelvinator of India Ltd. [2010 (1) TMI 11 - SUPREME COURT OF INDIA] is fully applicable to the facts and circumstances and it cannot be said that there was failure on the part of the assessee in disclosing the material facts. As the assessee has disclosed all the material facts relating to giving of advance to Mr. SV Rao and it is also on record that he is a Secretary of the assessee Trust. AO after considering this fact preferred not to take any decision on this issue. Being so, AO precluded from taking any contra decision as there is no failure on the part of the assessee in furnishing the material evidence before the Assessing Officer. Once AO applied his mind and had taken conscious decision on the impugned matter, it is not open to AO to reopen the assessment. In favour of assessee.
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