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2017 (3) TMI 110 - HC - Income TaxValidity of reopening of assessment - eligibility to claim exemption under Section 10 - Held that:- The assessee has placed on record the replies made to the queries on each of the aspects as well as the documentary evidence spanning several Annexures to the letter. It is quite evident that the AOs, upon proper inquiry and investigation into these materials, were satisfied as to the nature of the petitioner‟s activities and it was eligible to claim exemption under Section 10 of the Act. It has been repeatedly held in several decisions, both before and after the ruling of the Supreme Court in Commissioner of Income Tax v. Kelvinator of India Ltd (2010 (1) TMI 11 - SUPREME COURT OF INDIA) that a notice for re-opening the assessment is permissible only when it: (i) does not amount to “change of opinion”; (ii) is based on tangible material/evidence but is not opposed to the existing record and (iii) points to suppression of material facts by the assessee in the original return. In the present case, none of these elements ex facie exist to justify the impugned notice. It is therefore quashed as are all proceedings emanating from the impugned notice. - Decided in favor of assessee.
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