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2018 (2) TMI 982 - HC - Income TaxValidity of reopening of assessment - A.O. power to review in the absence of any fresh tangible material - eligible reason to believe - disallowance u/s 40(a)(ia) for non-compliance of the provisions of section 194(c) Held that:- Assessing Officer raised a specific query regarding the nature of the assessee’s business and the same was answered in writing by the assessee. The nature of the transaction was spelt out in detail. On the basis thereof the assessee’s contention that he was merely a commission agent was obviously accepted. The original assessment order proceeded on that basis. The subsequent proceedings for reopening were held to be on change of opinion. There is also held that there was no new information or material. The Tribunal on this basis and after following the judgments of Delhi High Court in Madhukar Khosla v. Assistant Commissioner of Income Tax (2014 (8) TMI 568 - DELHI HIGH COURT) and Orient Crafts Ltd. (2013 (1) TMI 177 - DELHI HIGH COURT) rightly allowed the appeal on the ground that the Assessing Officer was not entitled to assume jurisdiction under section 147 of the Act in the absence of any new information or material. - Decided in favour of assessee
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