Allowing the petition the Court held that the assessee claimed settlement amount paid to its employees with respect to civil suits filed against it in US court as expenses and the Assessing Officer during scrutiny assessment accepted said claim, however Assessing Officer later issued reopening notice on receiving information from Investigation Wing that assessee had paid penalty in USA and same was claimed as allowable expense instead of penalty, since as per settlement agreement payment was on account of a pure settlement between parties wherein settlement was arrived at for purposes of avoiding expense, risk and uncertainty, furthermore order passed by US Court approving said agreement did not refer to amount payable as a penalty amount, in view of fact that there was no material available on record other than information from Investigation Wing to prove that payment made was penalty, reopening would not be justified. Reassessment notice and order disposing the objection was quashed. (AY. 2013-14)