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2014 (1) TMI 947 - AT - Income TaxValidity of re-opening of assessment u/s 147 of the Act – Expenses claimed as broken period interest – deduction allowed u/s 36(1)(vii) of the Act – Held that:- Re-openings were done after the end of four years for the impugned assessment years. Therefore, the first proviso to Section 147 will squarely apply - It is required for the Revenue to show that there was failure on the part of the assessee to disclose fully and truly material facts necessary for the assessment - Reopening for assessment year 1989-90 was done for a reason that CBDT circular was not correctly followed by the A.O. with regard to the claim of bad debts under Sections 36(1)(vii) and 36(1)(viia) of the Act - Both these cannot be considered as arising on account of any failure on the part of the assessee to disclose fully and truly material facts necessary for the assessment - Both these also cannot be construed as on account of any evidence which could not come to the notice of the Assessing Officer for want of due diligence. The decision in CIT v. Kelvinator India Ltd. [2010 (1) TMI 11 - SUPREME COURT OF INDIA] followed - unless and until tangible materials are available with Assessing Officer, and failure of the assessee to fully and truly disclose material particulars necessary for assessment is established, reopening could not be done after the expiry of a period of four years from the end of the assessment year - thus, reopening done for both of the years was not valid – Decided in favour of Assessee.
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