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2021 (9) TMI 375 - HC - Income TaxReopening of assessment u/s 147 - assumption of jurisdiction by the second respondent - Proceedings after expiry of four years from the end of the assessment year - taxability of the benefit derived from one time settlement (OTS) - waiver of loan liability as trading liability or capital liability - HELD THAT:- AO while completing the original assessment, took note of the submissions and in the assessment order dated 27.7.2009 u/s 143(3) of the Act, there was a discussion in respect of the OTS and the loans, etc. With regard to the hire purchase interest, AO noted that the same was not disallowed in the earlier years under Section 43(B) of the Act and as such, when it was waived, it became income of the assessee since the same was allowed in the earlier years as trading liability. Accordingly, a sum was assessed to tax under Section 41(1) of the Act. The issue, which appears to be the reason for reopening, was, in fact, discussed by the AO in the original assessment and it was completed. If such is the factual position, unless and until the AO has fresh tangible material brought on record while recording the reasons for reopening, the reopening of assessment, if permitted, would amount to review of the earlier decision, which is impermissible in law. Thus, we are satisfied that the assumption of jurisdiction by the second respondent to reopen the assessment is not sustainable. - Decided in favour of assessee.
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