9911796707
TMI Blog2012 (9) TMI 396X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee, on both the occasions, supplied necessary material through letters and documents produced on record. Thus, during the scrutiny assessment proceedings, the AO was actually aware about the claim of the assessee u/s 57(iii). Hence, there was no failure on the part of the assessee to disclose fully and truly all material facts, necessary for assessment. The notices for reopening the assessments beyond a period of four years, from the end of the relevant AY fails on this ground alone - Decided in favor of assessee. - 4569 of 2002 - - - Dated:- 2-7-2012 - AKIL KURESHI, HARSHA DEVANI MS., JJ. JUDGMENT Akil Kureshi J.- 1. The petitioner has prayed for quashing and setting aside the notice dated March 11, 2002, as at annexu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... establish that during the original assessment, which was framed under section 143(3) of the Income-tax Act, 1961 ("the Act" for short) on March 31, 1998, several queries were raised by the Assessing Officer with respect to the investment of the petitioner in purchasing the shares of one company, viz., Mastek Ltd. 4. If we peruse the reasons recorded by the Assessing Officer, his principal objection is that on the funds borrowed for purchasing such shares, interest would not be deductible under section 57(iii) of the Act. 5. We would have given detailed reasons for our ultimate conclusion, but for the fact that identical issue has been decided by this court. Such an issue of identical nature arose in the case of one Ketan B. Mehta i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was necessary to examine the nature of such investments and to ascertain whether the investment was made for the sole purpose of earning dividend income or was predominantly or exclusively for the purpose of acquiring controlling shares of the Mastek Ltd. it was open to the Assessing Officer to make further inquires. To my mind, nothing is pointed out to suggest that the assessee owed such a duty to disclose further facts in this regard . . . As already noted, in both the assessments, the assessee had dis- closed primary facts in the returns filed. Further, the Assessing Officer had raised certain queries about borrowings and the interest paid thereon and the dividend earned. The assessee, on both the occasions, supplied necessary mater ..... X X X X Extracts X X X X X X X X Extracts X X X X
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