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TMI Blog2015 (1) TMI 307X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment proceedings the material facts were produced and satisfactorily explained by the assessee which were duly examined by the AO. - Even during original proceedings the AO did not make any addition/disallowances, meaning thereby, he was satisfied with the explanation of the assessee. When the primary facts necessary for assessment are fully and truly disclosed, the ITO is not entitled to re-open the proceedings merely on the basis of change of opinion. Having second thought on the same material and omission to draw the correct legal presumption during original assessment do not warrant the initiation of proceeding u/s. 147 of the Act. Provisions of section 147, as amended with effect from 1.4.1989 are contextually different and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s no change of opinion and secondly the entire insurance commission was received in the year under consideration, therefore, the ld. CIT(A) while arriving at a particular conclusion ignored true facts. On the other hand, Ms. Aarti Vissanji, ld. Counsel for the Assessee defended the conclusion arrived at by the ld. CIT(A) by submitting that the basis on which re-opening was done by the AO had already been considered by him during original assessment proceedings, therefore, re-opening of assessment on same facts/basis is certainly change of opinion. It was also asserted that vide letter dated 23/9/2005, addressed to the AO, true facts were explained. Our attention was also invited to another letter dated 26/12/2005 filed before the AO. 2.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be recognised over the contract period. 2.3 It is also noted that the assessee vide letter dated 23/9/2005 (Page-1 of the paper book) enclosed the documents which are available on the letter and vide document No.5 product-wise break-up of unearned commission was furnished, the explanation of which was made available at Page-2 of the paper book. The product wise break-up is further available at page-5 of the paper book which was made available to the AO during original assessment proceedings. The AO raised various queries to which the assessee vide letter dated 26/12/2005 furnished a detailed reply (pages-5 to 10 of the paper book). The totality of facts are clearly indicating that during original assessment proceedings the material fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the AO. Our view is fortified by the decision from Hon'ble Apex Court in ITO vs. Lakhmani Mewal Das (103 ITR 437) and Shri Krishna (P.) Ltd. vs. ITO (221 ITR 538)(SC). The Hon'ble Andhra Pradesh High Court in Sirpur Paper Mills Ltd. vs. ITO (114 ITR 404) even went to the extent that re- assessment based on new views on the same facts is not permissible and similarly the Hon'ble Calcutta High Court in Century Enka Ltd. vs. ITO (143 ITR 629) concluded that where the relevant material or facts were admittedly already available during original assessment proceedings and there were no new facts or legal position was not known to the AO though the relevant material facts were available, ignorance of law would not be a ground or ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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