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2014 (4) TMI 1248 - HC - Income TaxReopening of assessment u/s 147 - notice u/s 148 on expiry of four years from the end of relevant assessment year - exchange difference on PSCFC and PCFC loans - HELD THAT:- We notice that in the instant case for A.Y 2006-07, the very issue has been raised, though concluded not only in the earlier years, but also, in the original assessment on due scrutiny. In absence of any new tangible material available with the Assessing Officer, on the basis of which he could form his belief that income chargeable to tax has escaped assessment, it is not open to the AO to change his opinion by issuing the notice of re-assessment for the same being impermissible under the law. Revenue could not point out as to in what manner, there has been a failure on the part of the assessee to disclose such material facts noted hereinabove. The reasons recorded itself also clearly indicates that from the verification of the record and on perusal of balance-sheet, details of exchange difference have been noted, leading to form a belief of escapement of income. From the very material available and in wake of this discussion, we hold that the belief formed by the Assessing Officer is from the very record of the case, and therefore, the very assumption of the jurisdiction on the part of the AO in this case, where the notice had been issued on expiry of four years' period is not sustainable, and therefore, despite the contention on the part of the Revenue of availability of alternate remedy, the interference at this stage is necessary. Notice of reopening deserves to be quashed and is hereby quashed therefor. We have recorded the objections raised by the petitioner for absence of deemed approval in accordance with law and though the same has been strongly resisted by the Revenue, if chosen not to opine of this aspect, as on the very first and vital ground, we have quashed the notice for reopening. - Decided in favour of assessee.
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