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2017 (4) TMI 919 - HC - Income TaxReopening of assessment - payment made towards Tanker Hire Charges in foreign currency on cash basis - Held that:- From the objections it appears that payment of Tanker Hire Charges was made to the resident of U.K. and Singapore only. Revenue is not in a position to point out any tangible material available with the A.O. in support of his belief that any payment of Tanker Hire Charges was made to the resident of France, on which T.D.S. was required to be deducted. There is not tangible material available with the A.O. to form an opinion that the income chargeable to tax has escaped assessment within the meaning of section 147. The assessment is sought to be reopened beyond the period of four years and there does not appear to be any failure on the part of the assessee in not disclosing the true and correct facts necessary for assessment and also on the ground that there was no tangible material available with the A.O. with respect to any payment of Tanker Hire Charges to the resident of France, on which T.D.S. was required to be deducted and thereby no income chargeable to tax has assessed the assessment, the impugned reassessment proceedings cannot be sustained and the same deserves to be quashed and set aside. It is required to be noted that one of the grounds on which the assessment is sought to be reopened is that the interest was paid to the banks situated in India. However, the same is factually not correct. As per the specific case on behalf of the assessee so stated even in the objections, no amount of interest was paid to any of the banks situated in India. Under the circumstances, assumption of jurisdiction to reopen the assessment on the aforesaid ground is on incorrect factual premise. Under the circumstances also the impugned reassessment proceedings deserve to be quashed and set aside. Present petition succeeds. The impugned notice issued upon the assessee under section 148 of the Income Tax Act, 1961 for the A.Y. 2009-2010 is hereby quashed and set aside. - Decided in favour of assessee.
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