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2022 (2) TMI 528 - HC - Income TaxValidity of Reopening of assessment u/s 147 - notice after expiry of four years - Entitlement to deduction on interest paid on housing loan from HDFC Ltd - HELD THAT:- The notice for re-opening has been issued after expiry of four years from the end of the relevant assessment year and the scrutiny and assessment u/s 143(3) of the Act having been done, the proviso to Section 147 of the Act shall be applicable. As per proviso there is a bar to re-open any assessment after expiry of four years from the end of assessment year unless revenue is able to show that there was failure on the part of the assessee to truly and fully disclose all material facts required for assessment for the relevant assessment year. Now, let us examine whether the reasons recorded for re-opening disclose any such information not disclosed by petitioner. In our view, there is nothing to indicate that there was non disclosure on the part of petitioner. Interest expense cannot be allowed as a deduction to the assessee either under Section 24(b) or under section 57 - Mr.Suresh Kumar submitted that by claiming deduction under Section 57 of the Act and not under Section 24(b) of the Act would also amount to nondisclosure. Mr. Suresh Kumar submitted that disclosure of material facts with respect to the setting off of the interest expenses under Section 57 of the Act might be full but it cannot be considered as true and it is failure on the part of the assessee. Mere production of books of accounts or other documents are not enough in view of explanation 1 to Section 147 of the Act. These submissions of Mr. Suresh Kumar cut no ice with us. ll the points raised in the reasons recorded have been considered during the assessment proceeding. In as much as, query was raised regarding the loan taken and utilisation thereof during the assessment proceeding. It is evident from letter dated 5th December, 2008 addressed by petitioner’s Chartered Accountants to respondent by which petitioner had forwarded details of Secured Loans alongwith utilisation thereof and balance as per books of accounts as on 31st March, 2006 and details of interest paid as shown under the head Financial Expenses. Of course, with the said letter various other details were also provided. Therefore, there has been query raised and query has been answered. Assessment Order of ITAT has attained finality for A.Y. 2009-10. If the ITAT has held that petitioner was entitled to the housing loan deduction and interest paid for housing loan from HDFC Ltd., thereby reversing the findings of the Assessing Officer as well as CIT (A) for A.Y. 2009-10, the entire basis in the reasons for re-opening for A.Y. 2006-07 also has collapsed. - Decided in favour of assessee.
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