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2014 (12) TMI 393 - HC - Income TaxValidity of notice for reopening of assessment u/s 147 r.w. s148 – Full and true disclosure of material particulars made or not – Income escaped or not – Held that:- The recorded reasons disclose two points which have purportedly led to the issuance of the notice - The first point was that on examination of the records it was found that the assessee had not shown receipts in the Profit and Loss Account to the extent of ₹ 18,95,45,672/- which had appeared in the 16A Forms that were submitted by the assessee for the relevant previous year – the difference which is sought to be made the subject matter of the reasons for initiating an action of reassessment was in contemplation of the AO at the time of the original assessment and a full reply had been given by the Chartered Accounts reconciling the differences pointed out by the AO – the AO in the assessment order dated 30.03.2008 had not made any additions after being fully satisfied by the reply submitted on behalf of the petitioner / assessee - It is clear that the attempt to reopen the assessment on this ground would be nothing but an attempt at changing the earlier opinion, which is not permissible in law – the facts had been fully and truly disclosed before the AO at the time of the original assessment. TDS deducted u/s 40(a)(ia) or not – Held that:- Assessee pointed out that the payments were made to its own employees and were not of the nature of payments covered u/s 40(a)(ia) - even the assessment order would reveal that these payments were made to its own employees inasmuch as he had produced the muster roll and the AO at the time of the original assessment had even made an ad-hoc deduction of ₹ 4 lakhs - the reopening of the assessment order could not have been directed inasmuch as the nature of the payments by themselves indicate that it could not be covered u/s 40(a)(ia) - there was no basis for seeking reopening of the assessment – the notice and the order for reopening is set aside – Decided in favour of assessee.
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