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2021 (6) TMI 497 - AT - Income TaxValidity of reopening of assessment u/s 147 - addition of broken period interest - HELD THAT:- In reply to SCN the assessee has furnished its reply explaining the reason for offering interest income of ₹ 1,04,08,502/- as against amount of ₹ 1,33,76,712/-. After receiving the aforesaid reply of the assessee, there was complete silence at the end of the assessing officer and suddenly, after more than two and half years, the assessing officer again sprang into action by issuing notice under section 148 of the Act on 30-03-2016. Thus, the aforesaid facts clearly demonstrate that, though, the assessing officer himself was satisfied that the assessee had correctly offered the interest income; however, only because of the audit objection, he initiated the proceedings under section 147 of the Act. That being the case, the reopening of assessment under section 147 of the Act, being merely on borrowed satisfaction, is invalid. The materials placed before us clearly demonstrate that in course of original assessment proceedings, not only the assessing officer has made thorough enquiry with regard to the disputed issue on which the assessment has been reopened, but the assessee has also furnished all relevant and necessary materials to justify the income offered by it. That being the case, we are of the considered opinion that the reopening of assessment in the present case is invalid and void ab-initio. - Decided in favour of assessee.
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