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2017 (1) TMI 1722 - AT - Income TaxReopening of assessment u/s 147 - loss on sale of shares - nature of loss - business loss or capital loss - as per AO Loss on sale of shares was not a business loss but only capital loss - HELD THAT:- Substantial part of loss claimed by the assessee was on account of loss in sale of shares which was debited in its profit and loss account as a specific item. It is not a case, where the ld. Assessing Officer was required to discover any material evidence with diligence. The entry was visibly available on the face of the record itself. Thus, we cannot say that ld. Assessing Officer had determined the loss of the assessee without verifying the profit and loss account filed by it. In a case where reopening is attempted after four years from the end of an assessment year, first proviso to Sec. 147 would clearly apply. Nothing has been brought on record by the Revenue to show that assessee had failed to disclose fully and truly all material facts necessary for the assessment. Further, hon’ble Apex Court in the case of Kelvinator India Ltd [2010 (1) TMI 11 - SUPREME COURT] had held that in the absence of fresh tangible material, reopening could not be done where original assessment was completed u/s.143(3) of the Act. Reopening done for the impugned assessment year was bad in law. Ex-consequenti the assessment is set-aside. - Decided in favour of assessee.
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