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2020 (9) TMI 1016 - HC - Income TaxReopening of assessment u/s 147 - notice beyond the period of four years from the end of the relevant assessment year - whether the business loss claimed by the assessee can be treated as a Speculative Loss - HELD THAT:- The decision in the case of Kelvinator of India Private Limited [2010 (1) TMI 11 - SUPREME COURT] fully supports the case of the assessee, wherein the Hon'ble Supreme Court held that after 01.04.1989, the Assessing Officer has power to reopen, provided there is tangible material to come to a conclusion that there is escapement of income from assessment, reasons must have a live link with formation of belief. As already pointed out the finding rendered by the AO stating that the expression 'or' occurring in between Clause (a) to (d) of Section 43(5) should be read as 'and' as no such interpretation could have been made to the statutory provision as explained by us in the presiding paragraphs. On facts, the Assessment Officer was in favour of the assessee. As used the expression 'seems' by stating that though the assessee seems to be qualified under clause (a) to Section 43(5), since they had not complied with condition ('d') they are not entitled to any relief. As pointed out earlier reopening, based upon a change of opinion or a review of decision taken by the Assessing officer, is impermissible. Further the interpretation given by the Assessing Officer to Section 43(5) of the Act is wholly untenable.- Decided against the Revenue
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