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TMI Blog2014 (8) TMI 765X X X X Extracts X X X X X X X X Extracts X X X X ..... ecially on the basis of letter which was submitted by the assessee itself at the time of assessment proceedings u/s 143(3) of the Act and was duly considered and reproduced in the original assessment proceedings - it was a merely change of opinion of AO and cannot be said to be a valid reason, information material or belief which would justify reopening – thus, reopening of assessment was bad in law and is liable to be set aside – Decided in favour of Assessee. - ITA No. 3469/M/2013 - - - Dated:- 20-8-2014 - Shri N. K. Billaiya And Shri Sanjay Garg,JJ. For the Petitioner : Shri Vijay Mehta, A.R. For the Respondent : Shri Kishor Dhule, D.R. ORDER Per Sanjay Garg, Judicial Member: The present appeal has been file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing disallowance of ₹ 1,07,22,937/- out of interest attributable to Wada Unit u/s 36(1)(iii) of the Act and capitalization of the same without considering the submissions of the assessee and facts of the case which are already on record of AO. The reasons given by her for doing so are wrong, contrary to the facts of the case and against the provisions of law. 3. The above grounds/sub-grounds are without prejudice to each other. 4. The appellant craves the leave to add, alter or amend all or any of the grounds of appeal. Ground No.1 3. Vide ground No.1, the assessee has agitated the reopening of the assessment by the Assessing Officer (hereinafter referred to as the AO) under section 140 of the Act. A perusal of the para 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the I.T. Act, any amount of the interest paid in respect of capital borrowed for acquisition of an asset for extension of existing business, whether capitalized in the books of account or not, for any period beginning from the date of capital borrowed for acquisition of the asset till the date on which such asset is put to use shall not be allowed as deduction. Thus the amount of interest ₹ 2,25,06,579/- paid fr borrowed capital invested in expansion in Wada and Nallagarh unit till the date of use of assets was no to be allowed. I, therefore, have reasons to believe that income chargeable to lax to the extent of excess interest allowed as above has escaped assessment. Issue notice u/s. 148 for A.Y. 2006-07. 4. A perusal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seen that the Legislature has not conferred power on the Assessing Officer to review its own order. Therefore, the power under section 147 cannot be used to review the order. In the present case, though the Assessing Officer has used the phrase reason to believe , admittedly between the date of the order of assessment sought to be reopened and the date of formation of opinion by the Assessing Officer, nothing new has happened, therefore, no new material has come on record, no new information has been received, it is merely a fresh application of mind by the same Assessing Officer to the same set of facts and the reason that has been given is that the some material which was available on record while assessment order was made was inadverten ..... X X X X Extracts X X X X X X X X Extracts X X X X
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