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2015 (10) TMI 261 - HC - Income TaxValidity of reopening of assessment - assessee had debited an amount to the profit and loss account by way of provision for obsolete stock - Income of the trading unit was required to be assessed separately and could not be set off against the brought forward losses of the Pune unit - incorrect allowance of deduction had been given to the assessee when it was not eligible for the same - goods in transit as also stores and spares - Held that:- All the queries and issues have been specifically raised and answered by the assessee in the original assessment proceedings. Thus, even though the Assessing Officer did not make any addition in the assessment order, it would have to be accepted that the issue was examined but the Assessing Officer did not find any ground or reason to make any addition or to reject the stand of the assessee. Consequently, it will have to be presumed that the Assessing Officer had formed an opinion which is now sought to be changed through the re-assessment notice, which cannot be permitted. For all the foregoing reasons, the impugned notice under Section 148 dated 28.03.2013 and the impugned order dated 18.02.2014 are set aside and the re-assessment proceedings in respect of the assessment year 2006-07 stand quashed. - Decided in favour of assessee.
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