2013 (8) TMI 1139 - HC - Income Tax

Summary

Issues involved:
1. Validity of reassessment order
2. Reopening of assessment based on excessive deduction under Section 80HHC of the Income Tax Act

Validity of reassessment order:
The High Court considered the appeal challenging the Tribunal's decision on the validity of the reassessment order. The Tribunal found that the Assessing Officer's reassessment was a mere change of opinion without tangible material to support the claim of income escapement. The Court quoted the Tribunal's findings stating that the Assessing Officer substituted his own views, indicating a change of opinion rather than a valid reassessment. Due to this fact finding, the Court found no legal element involved and dismissed the appeal.

Reopening of assessment based on excessive deduction under Section 80HHC:
The Tribunal also addressed the issue of reopening the assessment based on excessive deduction under Section 80HHC of the Income Tax Act. It was noted that the Tribunal correctly held that an audit opinion regarding the application or interpretation of law cannot serve as a basis for reopening the assessment under Section 147(b) of the Income Tax Act. The Court cited precedents from the Supreme Court to support this position, including the cases of Indian & Eastern Newspaper Society v. Commissioner of Income Tax and Commissioner of Income Tax v. Lucas TVS Ltd. Consequently, the Court concluded that there was no further legal aspect to be decided in the appeal and dismissed it without costs.