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2021 (12) TMI 1090 - HC - Income TaxReopening of assessment u/s 147 - Notice issued after the expiry of four years - addition u/s 14A - HELD THAT:- No indication that there was any failure on the part of petitioner to truly and fully disclose any material fact. Simply using the words "as there is a failure on part of assessee to disclose fully and truly all material facts necessary for its assessment during the year under consideration" would not help. These are nothing but bald averments. A failure has to be spelt out in the reasons recorded. Respondents have failed in that. The entire basis for reopening is that provisions of Section 14A and Rule 8D with regard to dividend income was attracted but while completing the scrutiny assessment no mention is made for the same. During the assessment proceedings, after petitioner filed its revised return of income on 29th March 2014, respondent no.1 issued notice under Section 142(1) of the said Act on 17th September 2014. Among other queries, respondent no.1 specifically inquired about the details of dividend income earned and computation of expenses incurred on earning this income as per the provisions of Rule 8D. Petitioner, in its reply dated 24th September 2014 to the notice issued under Section 142(1) of the said Act, has specifically addressed the query with regard to dividend income. Petitioner has stated that the amount of dividend income is exempt so it is not included in computation as taxable income. As far as Rule 8D was concerned, petitioner has submitted that the company is taxable as per the tonnage tax scheme and thereby, it is not claiming any expenditure, viz.-aviz., the exempt income and hence, Rule 8D was not applicable. After considering these submissions of petitioner, the original assessment order under Section 143(3) of the said Act was passed on 28th January 2015. Respondent no.1 has, therefore, applied his mind with regard to petitioner's dividend income while passing the assessment order under Section 143(3) for Assessment Year 2012-2013. We find that the notice has been issued without proper jurisdiction. It is not permissible for respondents to change its opinion based on the same set of facts. In our view, this petition has to be allowed and is hereby allowed - Decided in favour of assessee.
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