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2014 (10) TMI 226 - HC - Income TaxValidity of notice for reopening of assessment u/s 148 Failure on the part of assessee disclosed or not - AO was of the view that the interest paid on borrowings was business expenditure to be allowed as revenue expenditure Held that:- The notices having been issued beyond a period of four years from the end of relevant AY, the reasons in support do not indicate any failure on the part of the petitioner to submit fully and truly all material facts necessary for assessment - it is submitted that income chargeable to tax has escaped assessment - However, the reasons nowhere indicate any failure on the part of the petitioner to disclose truly and fully material facts necessary for assessment - the reopening of assessments u/s 148 of the Act beyond the period of four years from the end of the relevant AY has to specify the failure on the part of the assessee to disclose fully and fully all material facts necessary for assessment - Revenue has to justify the notices only on the basis of the reasons recorded at the time of issuing the notices - The reasons as recorded and furnished to the petitioner, do not disclose even remotely any failure on the part of the assessee to disclose truly and fully material facts necessary for assessment during the relevant AYs 1998-1999 and 1999- 2000 the notice is without jurisdiction cannot be sustained Decided in favour of assessee.
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