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2013 (10) TMI 1127 - AT - Income TaxRe-opening of assessment u/s 147 Reasons to be given for re-opening u/s 148 Held that:- As no previous assessment was framed nor any return of income was filed by the assessee, the AO has issued notice u/s 148 only asking the assessee to file its return of income, therefore, no any reason why the AO should have given any reason for reopening the assessment Decided against the Assessee. Addition being amount credited to capital reserve on account of waiver of principal amount of loan allowed by Centurian Bank Held that:- The statement of loan amount as exhibited clearly shows that the assessee has transferred the waiver to its capital reserves amount totaling to Rs.9,23,16,891/- - Settlement agreement between assessee and the bank does not specify the principal amount and the interest and other charges. However, the AO has given a very categorical finding by bifurcating the principal amount and the interest amount - CIT(A) has very correctly excluded the principal amount from the clutches of the provisions of section 41(1) of the Act and restricted rightly the interest part to be taxed u/s 41(1) of the Act Decided against the Assessee. Depreciation on BSE card Held that:- Claim of depreciation on BSE Card is disallowed as there is no business activity. Disallowance of expenditure as there is no business activity Held that:- Reliance has been placed upon the judgment of Honble Co-ordinate bench in the identical case of Classic Shares & Stock Broking Pvt. Ltd [2010 (11) TMI 716 - ITAT, Mumbai] It is held relying upon the above case that assessee is carrying on the business activity Decided in favor of Assessee.
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