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TMI Blog2016 (1) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... th the authorities below have gone wrong in deciding the reopening as valid. However, it is established that that in the present case the issue reopening of assessment is incorrect and invalid. Therefore, quash the orders of the authorities below on this legal issue and decide the same in favor of the assessee. - I.T.A. NO. 5179/DEL/2014 - - - Dated:- 28-9-2015 - SHRI H.S. SIDHU, JUDICIAL MEMBER For The Assessee : Shri Ved Jain, Advocate For The Department : S h. Sudhiranjan Senapati, Sr. DR ORDER PER H.S. SIDHU : JM This Appeal filed by the Assessee emanate out of the Order dated 06.8.2014 passed by the Ld. CIT(A), Meerut relevant to assessment year 2007-08. 2. The following grounds have been raised in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming addition of ₹ 2,OO,OOOIin respect of loan received from Mr. Virendra Kumar Yadav. (ii) That the above said addition has been confirmed by misinterpreting the facts and arbitrarily rejecting the explanation and evidences submitted by the appellant in support of its contention. 5. That the appellant craves leave to add, amend or alter any of the grounds of appeal. 3. The brief facts of the case are that Assessee filed return of income on 27.12.2007 declaring Net Income of ₹ 1,03,794/-. The notice u/s. 148 was issued to the Assessee on 10.8.2010 which was duly served on the assessee through speed post. In comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes that the reopening done without even an allegation that the assessee has failed in its statutory obligation to disclose fully and truly the material facts necessary for the computation of income and as such cannot be held to be valid in law and need to be cancelled on this primary ground only. There is not even an allegation in the reasons that assessee has failed to disclose fully and truly all material facts for the compaution of its income. To support his contention, he placed reliance on the judgment of the ITAT in the case of M/s Minda Industries Ltd. vs. DCIT Circle6(1), New Delhi in ITA NO. 5509/Del/2012 dated 19.6.2015. 6. On the other hand, Ld. DR contended that the reopening in question is valid, hence, he relied upon the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are similar and identical to that of the decision of the Tribunal in the case of Minda Industries Ltd. vs. DCIT (Supra) vide order dated 19.6.2015. For the sake of convenience, the relevant para 14 to 15 at page no. 20 to 24 of the order are reproduced hereunder:- 14. We have considered the submissions of both the parties andcarefully gone through the material available on the record. In thepresent case, it is an admitted fact that the original assessment in assessee s case was completed u/s 143(3) of the Act on 30.03.2006 and the assessment was framed at an income of ₹ 4,28,28,277/- after making certain additions/disallowances. Thereafter, on the basis of information received by the AO from Investigation Wing that the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge of opinion. On a similar issue the Hon ble Delhi High Court Full Bench in the case of CIT Vs Kelvinator of India Ltd. 256 ITR 1 held as under: The scope and effect of section 147 as substituted with effect from April 1, 1989, by the Direct Tax Laws (Amendment) Act, 1987, and subsequently amended by the Direct Tax Laws (Amendment) Act, 1989, with effect from April 1, 1989, as also of sections 148 to 152 have been elaborated in Circular No. 549, dated October 31, 1989. A perusal of clause 7.2 of the said circular makes it clear that the amendments had been carried out only with a view to allay fears that the omission of the expression reason to believe from section 147 would give arbitrary powers to the Assessing Officer to reopen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ong. Hence, it is clear that section 147 of the Act does not postulate conferment of power upon the Assessing Officer to initiate reassessment proceedings upon a mere change of opinion. The aforesaid order has been affirmed by the Hon ble Supreme Court in the case of CIT Vs Kelvinator of India Ltd. 320 ITR 561. 15. In the present case, also the AO while framing the original assessment, specifically, asked the assessee to furnish the details of the unsecured loans and the assessee gave the details by disclosing the name of the persons from whom loans were received and also furnished their PAN nos. alongwith the requisite details in the form of affidavit from the Directors of the lending companies, balance sheet profit loss A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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