The\u00a0 assessee is\u00a0 engaged in the business of real estate and development . The assessment was completed u\/s 143 (3) of the Act\u00a0 allowing the deduction claimed against interest income u\/s 57 of the Act . The Assessment was reopened on the ground that the interest paid on the loans is allowable\u00a0 under section 37 (1) of the Act . Since there was no business income during the year , the entire interest should have been capitalised to the\u00a0 WIP as against claiming as deduction u\/s 57\u00a0 which is not an allowable deduction .\u00a0 \u00a0Against the disposal of objection , the assessee filled writ before the High Court . \u00a0\u00a0Allowing the petition the Court held that there was neither an omission nor failure on the part of the assessee to disclose material facts necessary for assessment\u00a0 . Reassessment notice was held to be bad in law .\u00a0 ( WP No. 2814 of 2019 dt .14 -9-2021\u00a0 ( AY.2012-13 )<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 147 : Reassessment \u2013 After the expiry of four years – No failure to disclose material facts \u2013Interest income \u2013 Deduction – Change of opinion \u2013No power of review – Reassessment is held to be bad in law [ S. 37 (1), 56, 57, 148 , Art , 226 ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-22044","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-5Jy","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/22044","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=22044"}],"version-history":[{"count":3,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/22044\/revisions"}],"predecessor-version":[{"id":24571,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/22044\/revisions\/24571"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=22044"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=22044"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=22044"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}