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2016 (4) TMI 218 - HC - Income TaxReopening of assessment - AO completed the original assessment under Sections 8(2) read with 15 of the Interest Tax Act, 1974 on 7.3.2000, for the assessment years 1996-97 and 1997-98 - Held that:- The nature of the omission on the part of the assessee was indicated in the notice for reopening the assessment as an omission to indicate the nature of the discounting charges. The amount, in respect of which, the assessee claimed exemption, related to discount on treasure bills. The Department claimed that under Section 2(7) of the Interest Tax Act, discounting charges alone are excluded from the definition and that a discount on treasure bills does not stand excluded. The Department perceived that this distinction between a discount on treasure bills and discounting charges was omitted to be brought to the notice of the Assessing Officer, entitling the Assessing Officer to reopen the assessment after four years on the ground of failure to furnish full and true information. Admittedly, the assessee made a disclosure about the amount, in respect of which, they were making a claim under the heading 'bill discounting charges'. Since it is a scrutiny assessment, the Assessing Officer was obliged to consider the accounts, documents and evidence before passing the orders of assessment. Normally, it is presumed that an officer entrusted with a statutory function, carries it out in accordance with law unless it is assailed to be not so. It is not the case of the Department that there was a failure on the part of the Assessing Officer to discharge his duties under Section 8(2) properly. In such circumstances, it must be presumed that there was no omission on the part of the assessee or that there was an omission on the part of the Assessing Officer to scrutinize the accounts as per Section 8(2). In all other cases, reopening is not possible. - Decided in favour of the assessee
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