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2018 (2) TMI 1712 - HC - Income TaxReopening of assessment - Carry forward loss under Section 79 denied - reopening beyond the period of four years - non independent application of mind by A0 - Held that:- The reasons in support of the impugned notice itself records the fact that the issue of shareholding pattern of the company was discussed by the Assessing Officer in his Assessment order passed in the regular assessment proceedings. The only basis of reopening is that the Assessing Officer in the regular assessment did not apply provisions of Section 79 of the Act, to determine the taxable income. This non-application of mind by the AO while carrying out assessment cannot lead to the conclusion that there has been any failure on the part of the Assessee to truly and fully disclose all material facts necessary for Assessment. The impugned order of the Tribunal correctly placed reliance upon the decision of the Supreme Court in Calcutta Discount Company Ltd (1960 (11) TMI 8 - SUPREME Court) to hold that not pointing out the inference to be drawn from facts will not amount to failure to disclose truly and fully all material facts, necessary for assessment. - Decided in favour of assessee.
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