The assessment was reopened beyond four years on the ground that the disallowance under section 14A read with rule 8D had been incorrectly computed. The Tribunal held that the very disallowance made in the original assessment had already been deleted in the assessee’s own case as no exempt dividend income had been earned during the year. As there was no failure on the part of the assessee to disclose fully and truly all material facts, the reopening beyond four years was without jurisdiction and liable to be quashed. The reassessment was also initiated on the allegation that receipts from transactions with the National Spot Exchange Ltd. represented speculative income. The Tribunal found that there were no such transactions during the relevant assessment year and the addition itself pertained to a later year. Since no addition survived on the reasons recorded for reopening, the Assessing Officer could not make additions on other issues not forming part of the recorded reasons. The reassessment and consequential additions under sections 43(5), 73 and 40A(2)(b) were therefore quashed.   (AY. 2009-10).