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2024 (1) TMI 861 - AT - Income TaxValidity of reassessment proceedings - unexplained investments in the NCD [Non-convertible debentures] - HELD THAT:- NCDs were subscribed on 17.06.2014 by the assessee in a company name M/s Hindustan Power Projects P. Ltd. The assessee has also earned interest and that interest has been offered to tax in the assessment year 2015-16 and 201617 and the NCDs were redeemed in the month of September 2015 and October 2015 relevant to the assessment year 201718 and then transferred the funds from Deutesche Bank India, to J.P Morgan Bank in Singapore. Assessee has obtained form 15CB and filed form 15CA with regard to the said remittances to its J.P Morgan Bank account in Singapore. From the above it is apparent that the assessee has only repatriated the amounts invested in the earlier years and hence, no taxability arises during the year. In the case of the assessee company, neither has any income accrued or arisen or is deemed to accrue or arise under that for the assessment year 2017-18 nor any claim has been under any DTAA. It is apparent that the Assessing Office has not examined the relevant records before them wherein the interest earned has been duly offered to tax. Hence it can be concluded that there was no escapement of income during the year and hence, the notice issued u/s. 148 is considered to be void ab initio and consequently the assessment is treated as nullity. Assessee appeal allowed.
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