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2016 (5) TMI 408 - AT - Income TaxReopening of assessment - exemption u/s. 54F disallowed - Held that:- As from the provisions of section 54F(4) of the Act that in any case the claim of exemption u/s. 54F could not be disturbed in A.y 2005-06 even if the construction of residential house has not been completed by the assessee within 3 years from the date of transfer. Accordingly, the basic reason on an issue for which the assessment was re-opened fails. Hence, any addition made other than the reason for which the assessment was reopened would also automatically fail as the assumption of jurisdiction itself fails on the part of the ld.AO. This issue is now well settled by the decision of the Hon’ble Bombay High Court in the case of CIT Vs. Jet Airways (I) Ltd reported in (2010 (4) TMI 431 - HIGH COURT OF BOMBAY ) Respectfully following the aforesaid judicial precedents, we have no hesitation to quash the re-assessment proceedings on the ground that there was no tangible material with the ld.AO for initiation of re-assessment proceedings. We also find that in view of provisions of section 54F(4) r.w. proviso thereon, there is no scope for making any addition in A.y 2005-06. Hence, there could not be any reason to believe that income has escaped assessment for the A.y 2005-06. - Decided in favour of assessee
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