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2018 (5) TMI 231 - AT - Income TaxValidity of reassessment proceedings - original assessment was completed as per the provisions of section 153A - non-payment of leave encashment amount - Held that:- A perusal of the notice reveal that it is a case where the original assessment was completed u/s. 143 (3) r. w. s. 153A, that reopening was done after a period of four years, that the basis for issuing notice u/s. 148 was non-payment of leave encashment amount, that an entry in the Tax Audit Report was the reason for initiating the reassessment proceedings. Now, if fact of filing of Tax Audit Report is taken into consideration it becomes clear that necessary details were made available to the AO, during original assessment proceedings. As the Tax Audit Report was available to the AO during assessment proceedings, so, the observation made, that the assessee had not filed necessary details, is factually incorrect. Considering the above, we are of the opinion that no new tangible material was relied upon by the AO for issuing notice u/s. 148 of the Act. In other words, same material was used to initiate the reassessment proceedings. Thus, it is a case of mere change of opinion. Also section 43B(f) would apply only to those cases where an employer would be any amount to an employee out of leave salary standing to credit of employees. In the case under consideration provision was made on the basis of actuarial valuation. Therefore, the provision for leave encashment would not fall under the preview of clause(f)to section 43 B of the Act. Thus t reopening has to be quashed on jurisdictional issue as well as on merits - Decided in favour of assessee
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