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2017 (9) TMI 1415 - HC - Income TaxReopening of assessment - deemed dividend addition u/s 2(22)(e) - independent application of mind by AO - Held that:- There is nothing on record to suggest that the Assessing Officer was acting as per the directives of the audit party or any other officer or authority. Merely because the relevant material was brought to his notice by an Assessing Officer of another assessee would not perse vitiate his satisfaction that income chargeable to tax has escaped assessment. This aspect of law is sufficiently clear. The issue of applicability of section 2(22)(e) of the Act when the recipient of loan or advance by the company is not a shareholder but is a concern in which the shareholders are having substantial interest, is not free from any doubt. The judgment of Delhi High Court is not accepted by the department and is in challenge before the Supreme Court. The Supreme Court itself in the later judgment in case of Gopal and Sons (HUF) (2017 (1) TMI 331 - SUPREME COURT), had opened a new dimension to the whole controversy. The return of the petitioner was accepted under section 143(1) without scrutiny. Considering such facts, we cannot hold that the reasons recorded by the Assessing Officer for issuing notice of reopening lack validity so that the notice for reopening can be terminated at this stage itself on such ground. - Decided against assessee.
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