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2014 (2) TMI 609 - AT - Income TaxValidity of Re-Assessment – No failure in disclosing Material facts – Held that:- Reopening of the assessment was beyond the period of four years from the original assessment completed u/s 143(3) of the Act and in the reasons recorded nothing is brought on record that there was a failure on the part of the assessee to disclose fully and truly all material facts - it cannot be said that the assessee did not disclose the correct figure of the business loss - the reopening was not justified. Provision for pension liability u/s 37(i) of the Act – Held that:- It cannot be said that there was a failure on the part of the assessee - Similarly in the revised return of income, the assessee had restricted its claim for deduction under Chapter VI-A to Nil in view of the negative gross total income - So it cannot be said that there was any failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment of the income – Relying upon Hindustan Lever Ltd. v. ACIT & Ors. 2004 (2) TMI 41 - BOMBAY High Court] - the notice issued u/s 148 of the Act was beyond the period of four years and the reasons recorded by the AO nowhere stated that there was a failure on the part of the assessee to disclose fully and truly all material facts necessary for that assessment year - the AO himself admitted that the provision for pension liability and deduction under Chapter VI-A had been wrongly allowed - So it cannot be said that it was wrongly allowed on the mistake of the assessee particularly, when all the figures and material was truly disclosed by the assessee – thus, the reopening beyond four years by issuing notice u/s 148 of the Act was bad in law and the learned CIT(A) rightly cancelled the assessment framed by the AO on 30.12.2003 – there is no reason to interfere in the findings of the CIT(A) – Decided against Revenue.
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