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2013 (9) TMI 270 - AT - Income TaxRe-opening of assessment u/s 147 for the reason of legal opinion expressed by the audit party and not the factual error found by the audit team – Held that:- Relying upon the judgment in the case of Xerox Modicorp Ltd.[ 2013 (1) TMI 160 - DELHI HIGH COURT]; Air India[1994 (10) TMI 33 - BOMBAY High Court] and Indian Eastern and Newspaper Society [1979 (8) TMI 1 - SUPREME Court], it has been held in the present case that re-opening of assessment is not valid. In the instant case, 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 decision of Hon’ble Apex Court in the case of P.V.S. Beedies Pvt.Ltd. [1997 (10) TMI 5 - SUPREME Court] would not apply because in that case, there was only a factual error – Decided against the Revenue.
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