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Issues:
Validity of action under section 147(b) of the Income-tax Act, 1961 based on recorded reasons. Analysis: The case involved an application by the Commissioner of Income-tax under section 256(2) of the Income-tax Act, 1961, requesting the Income-tax Appellate Tribunal to refer a question of law for the court's opinion regarding the correctness of the Tribunal's decision on the validity of action under section 147(b). The original assessment for the relevant year was made under section 143(3) read with section 144B, and subsequently, the Income-tax Officer reopened the assessment under section 147(b) based on suspicions regarding certain deposits made by the assessee. The Commissioner of Income-tax (Appeals) allowed the appeal, stating that there was no evidence against the genuineness of the deposits at the time of reopening the assessment. The Tribunal upheld this decision, emphasizing the lack of material to support the reopening. The Revenue's appeal was dismissed by the Tribunal, and their application under section 256(1) was rejected as well, with the Tribunal finding no question of law arising from the case. The court affirmed the Tribunal's decision, noting the absence of evidence supporting the suspicion of the deposits' genuineness at the time of reopening the assessment, thus concluding that no question of law arose in the case. In summary, the court's decision centered on the lack of evidence supporting the suspicion of the deposits' genuineness at the time of reopening the assessment under section 147(b). The Commissioner of Income-tax (Appeals) and the Tribunal both found that the Income-tax Officer did not have sufficient grounds to reopen the assessment, leading to the dismissal of the Revenue's appeal and rejection of their application under section 256(1). The court concurred with this assessment, ultimately determining that no question of law was present in the case due to the absence of evidence against the genuineness of the deposits at the time of reopening.
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