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2018 (12) TMI 470

Reopening of assessment - change of opinion - addition u/s 36(1)(iii) on interest-free advance made by the assessee - tangible material or borrowed satisfaction - Held that:- In the present case, however, we are not inclined to undertake minute scrutiny of any reasons and other related material on record. - This is so because we are convinced that on merit also assuming that the reassessment i .....

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st revenue - INCOME TAX APPEAL NO.766 OF 2016 WITH INCOME TAX APPEAL NO.820 OF 2016 - Dated:- 4-12-2018 - AKIL KURESHI AND M.S. SANKLECHA, JJ. Mr. A.R. Malhotra with Mr. N.A. Kazi for the Appellant. Mr. Suresh Kumar for the Respondent. P.C.: 1. Since appeals arise out of the common judgment of income Tax Appellate Tribunal and involve identical issues, we have taken upon board Income Tax Appeal No .....

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ii. Whether on the facts and circumstances and in law, the Hon'ble ITAT was justified in deleting the disallowance made by the Assessing Officer u/s 36(1)(iii) of the IT Act, 1961, when there is direct nexus between the source and application of funds, which was found to be for nonbusiness purposes, and instead accepting the contention of availability of free funds, for which there is no dire .....

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issued the notice of reopening without making independent inquiries. Learned counsel for the Revenue may have an arguable case in this respect. Whether the Assessing Officer had tangible material at his command to form a reasonable belief that income chargeable to tax has escaped assessment or he was proceeding entirely on borrowed satisfaction would have to be examined in light of the reasons re .....

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