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2019 (3) TMI 131 - AT - Income TaxReopening of assessment - reasons to believe - Allegation of no work done by the company for PACL Ltd without any material - HELD THAT:- Opinion of the AO was that though ₹ 15 crores was received by the assessee from PACL for developing of land and the receipts was also duly disclosed but the expenses claimed in respect of the same were not allowable as it was not actually incurred as he was of the opinion that the actual development work of the land was not done. We find the recording could not point out as to what was the expense claimed by the assessee which was allegedly not incurred by the assessee and the basis of such belief. As there was no material before the AO at the time of making of recording on the issue to show that any expense claimed by the assessee was not allowable as deduction and as the receipt of ₹ 15 crores was duly disclosed as income by the assessee, there was no valid reason to believe that any income of the assessee which was chargeable to tax has escaped assessment for the year under consideration. Consequently, the assumption of jurisdiction to reopen the assessment, in the instant case, was bad in law. Hence, the impugned order of reassessment is hereby cancelled. - Decided in favour of assessee.
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