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2019 (5) TMI 1206 - HC - Income TaxRe-assessment Proceedings u/ss 147 / 148 - original assessment u/s 143(3) - beyond the limitation of 4 years - failure on the part of the Assessee to fully and truly disclose the relevant materials resulted in such escapement of income - disallowance of broken period interest - entertainment expenses - share issue expenses - disallowance u/s.14A - deduction u/s.36(1)(viia) - provision for salary arrears - depreciation on buildings - recognition of commission, exchange and brokerage on receipt basis - non inclusion of claims under ECGC & DICGC - HELD THAT:- In the facts and circumstances of the case, from the reasons for reopening, which we find only in the form of Assessment Proceedings as reproduced by the learned Tribunal, we cannot infer any such failure on the part of the Assessee to disclose fully and truly the relevant material resulting in such escapement of income in the form of either excess deductions or some additions or deductions u/s 36(1). All these deductions / allowance / disallowance of expenses were dealt with by the Assessing Authority at the time of original assessment upon scrutiny made u/s 143(3) of the Act and there is nothing on record to show that there was non-application of mind on the part of the Assessing Authority on these aspects of the matter at the time of original assessment u/s 143(3). The learned Tribunal was justified in relying upon the judgment of the Hon'ble Supreme Court in the case of CIT v. Kelvinator of India Limited [2010 (1) TMI 11 - SUPREME COURT]. The Hon'ble Supreme Court, in the above judgment, dealt with the amendment in law, with effect from 1st April 1989 under Section 147 of the Act, prior to and after enactment of the Direct Tax Law (Amendment) Act, 1987 has held that after 1st April, 1989, the Assessing Officer has power to reopen, provided there is "tangible material" to come to the conclusion that there is escapement of income from assessment. Reasons must have a live link with the formation of the belief. These words enabling the Assessing Authority to undertake the Re-assessment Proceedings, viz.that the 'reasons must have a live link with the formation of the belief' on the basis of 'tangible material' to come to the conclusion that there is escapement of income, are the conditions precedent for invoking Re-assessment Jurisdiction, and though the distinction between the two, viz. 'change of opinion' on the one side and 'reason to believe' on the other side is thin, it is definite and discernible. We do not find that the Tribunal, on the basis of the alleged reasons for reopening, wrongly found it to be a mere case of change of opinion or it has erred in arriving at such conclusion relying upon the aforesaid decision of the Hon'ble Supreme Court. - we do not find any substantial question of law arising for consideration in these appeals - appeals dismissed
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