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2020 (7) TMI 440 - HC - Income TaxReopening of assessment u/s 147 - change of opinion - expenses incurred on the cost of construction of building on the lease hold building/land - HELD THAT - Respondent - assessee filed computation statement along with the original assessment, which showed the expenditure on construction of building on lease hold land/building and this was specifically mentioned and claimed as a revenue expenditure. The assessment was completed after examining the computation statement and break-up details furnished by the assessee. After taking into consideration these facts and the fact that the assessment was reopened beyond a period of four years and also after considering the Proviso to Section 147 Tribunal held that the reopening was one of change of opinion. The First Appellate Authority and the Tribunal, on facts, found that the respondent assessee made a full disclosure of the expenditure and claimed the same as a revenue expenditure. We hold that no substantial question of law arises.
Issues: Reopening of assessment under Sections 143(3) and 147 of the Income Tax Act, 1961; Change of opinion; Failure to disclose truly and fully the details and particulars necessary for completing earlier assessment under Section 143(3) read with Section 147.
Analysis: 1. Reopening of Assessment: The assessment for the year 2004-05 was completed initially by the Assessing Officer under Sections 143(3) and 147 of the Income Tax Act, 1961. Subsequently, the assessment was reopened by the Assessing Officer under the same sections, leading to an order dated 30.12.2011. The appellant challenged this reassessment, particularly disputing the expenses incurred on the construction of a building on leasehold land. The Commissioner of Income Tax (Appeals) allowed the appeal filed by the assessee, leading to the Revenue's appeal before the Income Tax Appellate Tribunal. 2. Change of Opinion: The Tribunal, upon review, concluded that the reopening of the assessment was a change of opinion and dismissed the Revenue's appeal on 04.7.2013. The High Court, after hearing arguments from both sides, upheld the Tribunal's decision. The Tribunal considered that the respondent-assessee had disclosed the expenditure on construction of the building on leasehold land in the original assessment, and this was specifically claimed as a revenue expenditure. The assessment was completed after examining the computation statement and break-up details provided by the assessee. The Tribunal found that the reopening beyond four years was unjustified, and the reassessment was merely a change of opinion based on the facts available during the original assessment. 3. Disclosure of Details: Both the First Appellate Authority and the Tribunal found that the respondent-assessee had made a full disclosure of the expenditure and claimed it as a revenue expenditure. The High Court concurred with this finding, emphasizing that the assessee had provided all necessary details and particulars required for completing the assessment under Section 143(3) read with Section 147 of the Income Tax Act. Consequently, the High Court held that no substantial question of law arose for consideration in this appeal. 4. Judgment: The High Court dismissed the tax case appeal, affirming the Tribunal's decision. The Court found the reasons given by the Tribunal for dismissing the Revenue's appeal to be justified. As a result, the appeal failed, and no costs were awarded.
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