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2018 (10) TMI 1610 - HC - Income TaxReopening of assessment - deemed dividend addition u/s 2(22)(e) - Held that:- In absence of any scrutiny on this issue in the original assessment, the Asesssing Officer cannot be estopped from examining this question provided, of course, that he had reason to believe that income chargeable to tax had escaped assessment. In this context, he had cited reasons why, prima facie, applicability of Section 2(22)(e) of the Act arises. It would be for the assessee to contest the additions during the course of assessment proceedings. As is well settled, at the stage of Notice for reassessment, the Assessing Officer only has to demonstrate formation of a reasonable belief on the basis of the material on record that income chargeable to tax had escaped assessment. He does not have to establish beyond dispute that invariably, the addition would be made. The scrutiny of the Court, at that stage also, is limited. The petitioner’s contention that even if he may be holding more than 10% of the shares of the Company, he did not have less than 10% voting rights, can be examined in the assessment proceedings, for which, we are not inclined to quash the Notice itself. - Decided against assessee.
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