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2017 (11) TMI 270 - AT - Income TaxInitiation of reassessment proceedings - disallowance of interest on customer deposit accounts - Held that:- When the AO passed original order for the current year allowing deduction of interest on customers deposit accounts, he was fully aware of the similar expenditure having been disallowed for the preceding year. Still allowing deduction in the instant year was a conscious and considered decision on the point. Thus it is manifest that there is absence of any tangible material coming into the possession of the Assessing Officer after the passing of the original assessment order u/s 143(3) for the year under consideration indicating escapement of income. As evident that the Assessing Officer initiated reassessment proceedings on a mere change of opinion without there being any tangible material. Respectfully following the judgment in the case of Kelvinator (2010 (1) TMI 11 - SUPREME COURT OF INDIA ) and other numerous judgments on the point, we set aside the initiation of reassessment proceedings and the consequential order passed by the Assessing Officer. In view of our decision on the invalid initiation of reassessment proceedings, there is no need to dispose of the grounds raised by both the sides on merits. - Decided in favour of assessee.
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