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2014 (11) TMI 51 - HC - Income TaxReopening of assessment u/s 148 – Amount recognised as claim u/s 35D was a sufficient disclosure of material facts or not – Reopening of claim beyond four years without any basis - Held that:- Notice for reopening has been issued beyond the period of four years from the end of the relevant AY - As per section 35D of the Act, the expenditure clarifying such deduction would be spread over a span of ten assessment years - when such claim was made and as pointed out by the assessee in the note forming part of the return, the same was accepted in a scrutiny assessment for the first year of the claim, the rest was a matter of computation - the assessee disclosed all the material facts - as held in Calcutta Discount Co. Ltd. v. ITO [1960 (11) TMI 8 - SUPREME Court] - the duty is on the assessee to disclose all the facts which had a bearing on the question of a claim - if the AO had doubt about the validity of the claim in law, during scrutiny the same could have been examined - beyond the period of four years, it would not be open for the AO to disturb such claim in the absence of failure on the part of the assessee to disclose fully and truly all material facts – Decided in favour of assessee.
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