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2018 (12) TMI 470 - HC - Income TaxReopening of assessment - change of opinion - addition u/s 36(1)(iii) on interest-free advance made by the assessee - tangible material or borrowed satisfaction - Held that:- In the present case, however, we are not inclined to undertake minute scrutiny of any reasons and other related material on record. This is so because we are convinced that on merit also assuming that the reassessment is permitted, Revenue does not have an arguable case. We may refer to the decision of this Court in case of Reliance Utilities & Power Ltd. vs. CIT [2009 (1) TMI 4 - BOMBAY HIGH COURT]. The sole disallowance arising out of the order of reassessment passed by the Assessing Officer was one under Section 36(1)(iii) of the Act. It related to interest-free advance made by the assessee to one Nilesh Thakur. The CIT appeals and the Tribunal on facts came to the conclusion that the assessee had not utilized interest bearing borrowed funds for making such interest-free advances. It was found that the assessee had its own interest-free fund far in excess of interest-free advance. This being a pure question of fact, we do not see any question of law in this respect arising. - Decided against revenue
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