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2022 (1) TMI 1049 - AT - Income TaxValidity of Reopening of assessment u/s 147 - assessee bank has reduced the interest credited from the interest on securities for the assessment year 1989-90 as interest accrued but not received - HELD THAT:- Assessment was framed by the AO u/s.143(3) of the Act and all these details were available before the AO during the original assessment proceedings. The AR particularly took us through the ‘Memo of income adjusted for income tax purposes’ and drew our attention to Page 57 of assessee’s paperbook, where depreciation (loss on revaluation) of investments and interest on investments on Government and other securities accrued but not received is disclosed. Even, depreciation (loss on revaluation) of investments as on 31.03.1990 is disclosed - The assessee has also computed ‘Interest on securities on due and realisation basis’ and computed the entire amount which is enclosed in assessee’s paperbook -We noted that these are sufficient details and sufficient disclosure for framing of assessment because these details were available before AO during original assessment proceedings. Once assessment is framed u/s.143(3) of the Act originally for assessment year 1990-91 and reopening notice dated 04.03.1997, which is beyond 4 years and there is no failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment, the reopening cannot be held to be valid As per Hon’ble Supreme Court in the case of M/s. Foramer France and Jurisdictional High Court in the case of M/s. RPG Transmissions Ltd [2003 (1) TMI 101 - SC ORDER] we are of the view that there is no whisper in the reasons recorded that there is no failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment and the assessment was framed u/s.143(3) of the Act and reopening beyond 4 years which is against the provisions of the Act. Accordingly, we quash the reassessment proceedings and allow the appeal of the assessee.
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