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2014 (7) TMI 906 - AT - Income TaxRe-Assessment Proceedings u/s 148 – Reassessment initiated u/s 115WG – Held that:- The return was processed u/s. 115WE(1) of the Act -The return was accompanied by statutory report wherein it was specifically mentioned that the assessee has not considered the expenses on account of conference and meeting, business promotion Telephone-mobile expenses, Travel expenses, lodging and boarding expenses for FBT - the expenses have not been considered for the levy of FBT because they are legitimate business expenditure and not pertaining to welfare of employees and hence not liable to FBT u/s. 115WA of the Act. The reasons disclosed by the AO that there was escapement of income on going through the return of FBT filed by the assessee after he accepted the return u/s. 115WE(1) without scrutiny and nothing more - there is nothing in the reasons recorded to show that any tangible material had come into the possession of the AO subsequent to the issue of intimation - Relying upon CIT Vs Kelvinator of India Ltd. [2010 (1) TMI 11 - SUPREME COURT OF INDIA] - even in the cases of assessment u/s. 115WE(1), the reopening of the assessment cannot be made unless there is some new tangible material evidence to support the reopening of the assessment - the notice issued u/s. 115WG is set aside – Decided in favour of assessee.
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