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2023 (4) TMI 370 - AT - Income TaxValidity of the reopening of the assessment - scope of "tangible material" - assessee’s claim of interest expenditure incurred on payment made - As per DR merely filing the balance-sheet cannot absolve the assessee’s duty to explain/furnish fully and truly all the relevant material facts necessary for the assessment in respect of interest expenditure - HELD THAT:- Assessee had disclosed all the primary documents before the AO as discussed; and it cannot be said in the facts of this case that the assessee failed to disclose any material facts necessary for assessment on this issue (interest expenditure). Moreover, as noted this issue (Interest expenditure) has been specifically asked and assessee has replied to it - assessee cannot be said to have failed to disclose truly and fully the material/information regarding this issue. As decided in Mangalore Refinery & Petro Chemicals Ltd. [2022 (2) TMI 1038 - BOMBAY HIGH COURT] as held it cannot be said that the income escaped assessment on account of failure to make a true and full disclosure of the material facts (in cases where the proviso operates) - the exercise would then fall in the realm of mere change of opinion on the basis of the very same material, which is legally impermissible - it cannot be said that there is a "tangible material" which would justify recourse to the provisions contained in section 147 of the Act, 1961. Decided in favour of assessee.
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