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2017 (11) TMI 577 - HC - Income TaxReopening of assessment - exixtence of valid reasons to believe - Held that:- Unless and untill the respondent was able to establish that such claim for direction is the reason of the failure on the part of the assessee to truly and fully disclose material facts, the question of reopening the assessment would not arise. Both in the counter affidavit as well as in the reasons of reopening dated 07.06.2004 there is no allegation that the petitioner has failed to truly and fully disclose material facts necessary for the assessment. The impugned reopening of the assessment is unsustainable in law and it is a clear case of change of opinion as the respondent has miserably failed to point out as to what is the reason to believe that any income chargeable to tax has escaped assessment. Thus it is a case where on suspicion the impugned reopening proceedings have been initiated. At the relevant point of time, the decision of the Hon'ble Division Bench Supreme Court in case of GKN DRIVE SHAFTES (2002 (11) TMI 7 - SUPREME Court ) was not rendered by the Hon'ble Supreme Court and therefore, the petitioner did not seek for furnishing the reason for reopening which resulted in passing of the impugned assessment order. It is only thereafter, the petitioner sought for the reasons and the present writ petition has been filed. Accordingly, the writ petition is allowed and the notice issued for reopening the assessment and consequent assessment order dated 30.03.2004 are quashed. - Decided in favour of assessee.
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