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2021 (2) TMI 1291 - HC - Income TaxReopening of assessment u/s 147 - undisclosed loan transactions - action under Section 147 after the expiry of 4 years from the end of relevant assessment year - whether the revenue is justified in reopening the assessment for the year under consideration? - HELD THAT:- The record indicates that the assessee had disclosed the transactions of loan in their books of accounts and return of income. It is also admitted facts that during the scrutiny assessment proceedings, the assessee had furnished all the details as called for including bank statement of parties from whom loan was taken. It is the case of the revenue that the information received from the concerned, M/s. Ramdev Shares and Securities Pvt. Ltd, is paper company, managed by Mr. Pravin Jain and he was found to be an accommodation entry provider and the alleged transaction is bogus transaction and therefore, the amount of unsecured loan and interest thereon is liable to tax and has escaped assessment. After careful examination of the reasons recorded and the order of disposing of the objection, we find that on 08.10.2014, the scrutiny assessment was concluded. The search action carried out on 01.10.2013 in the case of Mr. Pravinkumar Jain. In the reasons recorded, it is nowhere mention that on which date the information was received by the department. Thus, we are of the considered view that the information as mentioned in the reasons recorded, cannot be termed as tangible material, as at the time of scrutiny assessment, it was very much available with the department. Assessee had disclosed fully and truly material facts, with respect to loan transaction as well the interest paid on the loan. Admittedly, the loan was paid up by the assessee on 21.08.2014 with the interest, after deducting TDS thereon. The Assessing Officer at the time of scrutiny assessment, accepted the transaction. Under the circumstances, it cannot be said that the assessee had withheld the primary material and assessee failed to disclose truly and fully all material facts of the assessment. Thus, the conditions precedent for exercise of power under Section 147 after expiry of period of 4 years of relevant assessment year are not satisfied - Decided in favour of assessee.
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