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2022 (10) TMI 398 - AT - Income TaxReopening of assessment u/s 147 - Reassessment after expiry of four years and just prior to expiry of six years from the end of the relevant assessment year - outstanding sundry creditors - HELD THAT:- On perusal of reasons recorded for reopening of assessment, it is observed that the assessing officer had no fresh tangible material in his possession while reopening the assessment under Section 147 - In the reasons recorded, AO has very clearly stated that on perusal of record, he came to know that confirmation of accounts relating to M/s. Goldplus Fabrics is not available on record. In the reasons, though, the assessing officer has alleged that assessee has not disclosed fully and truly all material facts relating to its assessment, however, it is a purely general observation without substantiating how the failure can be attributed to assessee. Only because confirmation of the sundry creditor was not available, it will not lead to believe that the income has escaped assessment. In the aforesaid view of the matter, I hold that reopening of assessment in the instant case is invalid. Even otherwise also, assessee has a strong case on merits. As could be seen, while completing the original assessment, the assessing officer had added back the outstanding sundry creditors - while deciding assessee's appeal, the Tribunal had deleted the entire addition made by the assessing officer having found that the disputed additions represent outstanding balance of creditors and the purchases from the said creditors have been accepted. The Tribunal also took note of the fact that the payment made to creditors in subsequent years was not doubted. Assessee had demonstrated that in case of the present creditor also, repayment has been made. That being the factual position emerging on record, addition made by the assessing officer is unsustainable. - Decided in favour of assessee.
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