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2014 (11) TMI 255 - ITAT MUMBAIReopening of assessment u/s 147 – Disallowance of interest by AO – Reasons for reopening not furnished by AO- Held that:- The AO did not furnish the reasons for reopening of assessment to the assessee before the completion of the assessment - the AO has extracted the reasons for reopening in the assessment order - the disallowance made relates to the interest paid u/s 234A and 234B of the Act – as decided in Bharat Commerce And Industries Ltd. Versus Commissioner of Income-Tax [1998 (3) TMI 2 - SUPREME Court] - the payment of interest cannot be allowed as deduction - apparently the assessee may not be having a case on merits - the assessee is strongly placing reliance on the technical ground of non- furnishing of reasons - Commissioner of Income-tax Versus Videsh Sanchar Nigam Ltd. [2011 (7) TMI 715 - Bombay High Court] - the assessment order cannot be upheld, since the AO has failed to furnish the reasons for reopening to the assessee before the completion of the assessment – Decided in favour of assessee.
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