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2020 (9) TMI 1090 - AT - Income TaxReopening of assessment u/s 147 - Validity of reason to believe - overstatement of capital fund of assessee trust - HELD THAT:- As noticed from the documents submitted by the assessee that this issue was already been questioned by the AO at the time of making original assessment u/s.143(3). In response to this, the assessee submitted his reply and financial statement before the AO and the notes of account were also appended with the financial statements. Documents available before us that this case has been reopened by the AO on the basis of audit objection in regard to capital funds. The assessee had also duly replied of the audit objections as per his letter which is placed on record. Details of capital funds were also submitted before the AO, which means this issue was already been examined by the AO at the time of framing original assessment. In absence of any new material pointed out by the assessee in the reasons recorded, the reassessment u/s.147 of the Act is null and void and we quash the reassessment order passed by the AO on legal ground. Since we have already quashed the reassessment order passed by the AO on legal ground, other grounds on merits need no adjudication. Thus, the appeal of the assessee is allowed on legal ground.
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