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2023 (10) TMI 406 - HC - Income TaxReopening of assessment u/s 147 - Deemed dividend u/s 2(22)(e) - HELD THAT:- The notice of ‘reasons to believe’ itself reveals information and material which was available with the AO. Despite relevant information being available with the AO, if the AO chooses not to deal with the same, it cannot be presumed that it is Petitioner, who has not made a complete and full disclosure. As perused in detail the letter dated 7th April 2008 of the Chartered Accountants of the Petitioner providing exhaustive details accompanied by all relevant documents to the AO. It is clear from all the documents on record including the notice recording reasons for reopening of assessment itself that there is no failure to disclose on the part of Petitioner. It is evident that the original assessment order was passed based on all the necessary information already available at the time of original assessment. The order rejecting the objections of Petitioner in fact supports the contention of Petitioner in respect of him furnishing all documents and relevant information, but simply discards the same by stating that even if there is no fresh material, but the information placed on record is such that it is difficult to be detected. The rejection order further cites a number of precedents of various Courts which are wholly inapplicable to the facts of the present case, being on a justification as to how the facts in the present case do not suggest a ‘change of opinion’ The reasons for rejection of the objections raised by petitioner are without any substance and hence untenable. We are firmly of the view that there is no failure on the part of Petitioner in making full and true disclosure to the AO during the original assessment leading to a possibility of application of the provisions of Section 2(22)(e) of the Act resulting in a substantial tax effect. Decided in favour of assessee.
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