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2017 (3) TMI 1176 - AT - Income TaxReopening of assessment - assessee had made commission payment to a non-resident Indian but no tax was deducted at source on this commission payment - Held that:- There is no dispute with regard to the fact that reopening was made after four years. The assessing officer has not brought any material available on record, that the assessee was guilty of not disclosing fully and truly all materials facts necessary for the assessment. We find that the Assessing Officer during the original assessment had made a specific query with regard to payment of commission and the assessee replied the same. Therefore, it cannot be inferred that the materials facts related to the payments of commission was not before Assessing Officer during the original assessment proceedings. The basis for reopening is admittedly the circular dated 22/10/2009 which was not having retrospective effects as held by the Hon’ble Jurisdictional High Court in the case of CIT Vs. Modern Insulators (2014 (10) TMI 748 - RAJASTHAN HIGH COURT ) wherein it has been held that the circular no. 7 dated 22/10/2009 cannot be considered retrospectively to make it applicable to make payment before that date - Decided in favour of assessee
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