2019 (4) TMI 1243 - HC - Income Tax

Reopening of assessment u/s 147 - assessee's claim of deduction u/s 10B was not allowable - HELD THAT - The assessee as per the relevant provisions of section 10B, existing at the relevant time, had chosen the initial assessement year of 1997- 1998. The assessee thus made a claim for deduction under section 10B of the Act through said assessment year 1997 -1998 and onwards. AO during the course of original assessment proceedings had examined the entire claim, had also enquired into the commencement of manufacturing and period of claim of deduction and all other conditions needed to be fulfilled for sustaining claim under section 10B. In the opinion of the tribunal, therefore, reopening the assessment on the same issue would not be permissible. The tribunal referred to and relied on the decision in the case of CIT Vs. Kelvinator of India Ltd. Reported 2010 (1) TMI 11 - SUPREME COURT OF INDIA . No error in the view of the tribunal. When during the original scrutiny assessment, the assessee's claim of deduction under section 10B of the Act was scrutinized, any attempt on part of Assessing Officer to reexamine the said claim, without any material would be based on change of opinion. Reopening of assessment was therefore clearly impermissible. - Decided in favour of assessee.

Summary

Issues:
Reopening of assessment within four years from the end of assessment year.

Analysis:
The appeal was filed by the revenue challenging the judgment of the Income Tax Appellate Tribunal regarding the reopening of assessment within a specific period. The Assessing Officer issued a notice of reopening of assessment after scrutinizing the assessee's claim of deduction under section 10B of the Income Tax Act, 1961. The tribunal held that since the assessee had already made the claim for deduction under section 10B for the initial assessment year of 1997-1998 and onwards, and the Assessing Officer had thoroughly examined the claim during the original assessment proceedings, reopening the assessment on the same issue would not be permissible. The tribunal cited the decision in the case of CIT Vs. Kelvinator of India Ltd. to support its reasoning.

The High Court concurred with the tribunal's view, stating that any attempt by the Assessing Officer to reexamine the claim of deduction under section 10B without new material would amount to a change of opinion, making the reopening of assessment impermissible. Therefore, the High Court found no error in the tribunal's decision and dismissed the Income Tax Appeal, concluding that no question of law arose in this case.