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2017 (11) TMI 1080 - AT - Income TaxReopening of assessment - grant of deduction u/s 35E - Held that:- A plain reading of the reasons recorded for re-opening takes us to a conclusion that the assessee has produced all evidences and filed all the details before the AO during the course of assessment proceedings and the AO had on considering the same granted deduction u/s 35E of the Act and thereafter rectified its claim u/s 154 of the Act vide order 20.12.2006. There is no new material which has come to the possession of the AO based on which the reopening has been made. In fact all the material facts required for grant of deduction u/s 35E are on record and the AO had examined the same. Merely mentioning that there is a failure on the part of the assessee in disclosing fully and truly all material facts in respect of this claim of the claim of deduction u/s 35E of the Act, as were necessary for assessment, in the reasons recorded, cannot per say fulfill the requirement of law when there is full disclosure of all the facts,. The requirement of the proviso to section 147 of the Act are not fulfilled in this case. - Decided in favour of assessee. Allowability of the claim of the assessee for development expenditure - Held that:- The details of the expenditure are given at para 6.2. of the order of the ld. CIT(A). The assessee has filed an application for the admission of additional evidence on this issue. On a careful consideration of this application we are of the considered view that the assessee was prevented by sufficient cause from furnishing these evidences before the First Appellate Authority or AO. Hence we allow this application of the assessee and admit this additional evidence. The additional evidence is in the form of order of exemption passed by D.G.I.T. (Exemption), Kolkata. The claim of the assessee for deduction u/s 80G of the Act, for a sum of ₹ 1 crore paid to West Bengal Family Welfare Samity was disallowed, on the ground that there is no certificate of exemption from Directorate of Exemption, Kolkata. As this alternative claim of the assessee has to be considered by the AO in the light of this new order of Director of Income Tax (Exemption), Kolkata dated 08.05.2006 we set aside this ground to the file of the AO for fresh adjudication in accordance with law.
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