TMI Blog2008 (8) TMI 524X X X X Extracts X X X X X X X X Extracts X X X X ..... calculated by the Assessing Officer on the amount of advance given to the subsidiary company. The order of reassessment was not valid. - 823 of 2008 - - - Dated:- 1-8-2008 - BADAR DURREZ AHMED, RAJIV SHAKDHER JJ Ms. Prem Lata Bansal for the appellant. S.K. Aggarwal for the respondent. JUDGMENT 1. This appeal at the instance of the Revenue pertains to the assessment year 1996-97. The issue involved in this appeal centres around the question of reopening of the assessment proceedings of the assessee in respect of the said assessment year. 2. The original assessment was completed under section 143(3) of the Income-tax Act, 1961 and after an expiry of four years from the end of the assessment year in question, the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the proceedings under section 147 were valid and that the addition made by the Assessing Officer ought to be restored. The Tribunal after considering the arguments advanced by the parties and examining the purported reasons recorded for reopening the assessment came to the conclusion that the proceedings initiated purportedly under section 147 of the said Act were invalid. The Tribunal also examined the finding on the merits recorded by the Commissioner of Income-tax (Appeals) and on both counts the Tribunal agreed with the Commissioner of Income-tax (Appeals). The Tribunal's findings are as under : "In the reasons so recorded for reopening the assessment, there is no allegation of the Assessing Officer that the assessee has failed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Assessing Officer. The only addition has been made on account of interest notionally calculated by the Assessing Officer on the amount of advances given to the subsidiary company/trust. In this respect, the Commissioner of Income-tax (Appeals) has recorded a finding that the assessee company was having much more interest- free funds than the amount of the loan. Nothing was brought on record to controvert this finding of the Commissioner of Income-tax (Appeals). We, therefore, do not find any infirmity in the order of the Commissioner of Income-tax (Appeals) both on account of legal issue of reopening as well as on the merits of deletion of disallowance on account of interest notionally calculated. In the result, the Revenue's appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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