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TMI Blog2008 (7) TMI 954X X X X Extracts X X X X X X X X Extracts X X X X ..... o proceedings under s. 147 be termed as based on mere change of opinion. 2. Whether the resort to s. 147 could be taken if the AO fails to make resort to regular assessment under s. 143 within the time permitted after assessment was made under s. 143(1)(a)." 3. The necessary facts are, that the present assessee filed a return on 12th July, 1991, which was processed under s. 143(1)(a) on 27th Sept., 1991, and a refund of Rs. 515 was issued to the assessee. Subsequently on 26th March, 1997, a notice under s. 148 was issued, as the AO was of the opinion, that there was under-assessment of income, inasmuch as the depreciation claimed by the assessee on tractor, which are agricultural implement, and was allowed to the assessee, whereas it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he primary facts, necessary for assessment are fully and truly disclosed, the ITO will not be entitled on change of opinion to commence proceedings for reassessment. Similarly, if he has raised a wrong legal inference from the facts disclosed, he will not, on that account, be competent to commence reassessment proceedings. 6. Inter alia on these premises it was found, that the ITO was not justified in reopening the already completed assessment, and there did not exist any reason whatsoever for forming the belief, that there was any income chargeable to tax has escaped assessment. Full facts in respect of depreciation on tractors were disclosed in the original return, which was processed under s. 143(1)(a), after compliance of deficiency le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceeding was quashed. 7. Aggrieved of this order the Revenue filed appeal, and the assessee also filed protective appeal. The learned Tribunal by the impugned order found, that the AO was not justified in opening the already completed assessment in the absence of valid reasons for reopening. It was found, that there was no evidence on record, which could justify, that income chargeable to tax had escaped assessment, particularly when such depreciation was allowed in the past, and it was found that in subsequent years also it was allowed. Thus, it was found that reopening of the assessment, only on the basis for depreciation was wrongly claimed and allowed, was nothing but a mere change of opinion, which cannot be a basis for initiating acti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tter dt. 7th July, 1970, that the managing director of that company had made a confession, to the effect, that the company was only a name lender, and had never advanced any loans to any person, and this was accepted in the assessments of the company for the asst. yrs. 1962-63 to 1964-65, and it was after receipt of this letter, that the ITO, Azamgarh, issued notices to the assessee for reassessment under s. 147(a), on the ground, that income had escaped assessment to tax, as a result of the failure of the appellant to fully and truly disclose material facts. On these facts it was found, that there it is not a case of mere change of opinion, or the drawing of a different inference from the same facts, as were earlier available, but acting o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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