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Ground of appeal raised by the assessee is that the learned CIT(A) erred in not treating the re-assessment proceedings as invalid, although during the original assessment proceedings, detailed documents were furnished to substantiate the 'Sales Promotion expenses', which only after examining all the facts and explanations and application of mind did the AO disallow Rs. 5.37 crores as expenses related to Doctor's Gifts/Expenses.

Shanti Prime Publication Pvt. Ltd.

Sec. 147 of Income Tax Act, 1961—Reassessment— No tangible material is shown on the basis of which the assessment is sought to be reopened and in the absence of tangible material, what the AO has done while reopening the assessment is only to change the opinion which was formed earlier on the allowability of the deduction and power to reopen an assessment is conditional on the formation of a reason to believe that income chargeable to tax has escaped assessment and power is not akin to a review - The existence of tangible material is necessary to ensure against an arbitrary exercise of power and there is no tangible material in the case of assessee. - MEDLEY PHARMACEUTICALS LTD. V/s DEPUTY CIT - [2020] 207 TTJ 143 (ITAT-MUMBAI)