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2021 (6) TMI 825 - HC - Income TaxReopening of assessment u/s 147 - ALV estimation - income from house property - whether Tribunal was right and justified quashing the reassessment when the assessment has been re-opened even before the expiry of 4 years from the end of the relevant assessment year? - excess relief was allowed by way of deduction of interest on housing loan - HELD THAT:- As the provisions rendered by Hon'ble Supreme Court in the case of Kelvinator of India Ltd.[2010 (1) TMI 11 - SUPREME COURT] is applicable in favour of the assessee and consequently, we hold that the AO proceeded to initiate reassessment proceedings u/s. 147 of the Act and issuance of notice u/s. 148 of the Act without any new tangible material and without application of mind merely on the strength of direction of Ld. CIT(A) that the suitable course of action available to the AO under the Act is application of provisions of section 147 of the I.T. Act as to the appellant excess relief was allowed by way of deduction of interest on housing loan. But there was no new or tangible material before the AO to initiate reassessment proceedings u/s. 147 of the Act. We are unable to see application of mind by the AO of the materials available before him. The AO has not recorded any basis or factum gathered by him after application of mind of the assessment already completed which could reflect that before initiation of reassessment proceedings u/s. 147 of the Act, he applied his mind and thereafter reached to a conclusion that he had reasons to believe that income chargeable to tax has escaped assessment within the meaning of section 147 of the Act empowering him to issue notice u/s. 148 - Decided in favour of assessee.
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