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TMI Blog2016 (2) TMI 1095X X X X Extracts X X X X X X X X Extracts X X X X ..... n the re-assessment proceedings on jurisdiction. In fact, Ld. CIT(A) did not even comment about the veracity of reopening of the assessment. As seen from the later part of the order, he did not even examine whether the AO made addition or disallowed expenditure. AO brought an amount of ₹ 15,77,330/- to tax as an addition under the head income from other sources, even after accepting that an amount of ₹ 1,50,300/- pertains to a firm. Without even understanding whether the amount was an addition to the income returned or disallowance of the expenditure claimed, the Ld. CIT(A) confirms the ‘disallowance’ made by the AO. This shows not only the non-application of mind by the CIT(A), but also total ignorance of facts and law on the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 1,50,330/- relating to firm M/s. Vital Agencies, Karimnagar, pertain to said Mr. K. Rajender Rao. This letter was accompanied by an affidavit from Shri. K. Rajender Rao dt. 04-10-2007 and the statement of bank account and account copy of the firm in which the said ₹ 1,50,330/- was also reflected. AO after due enquiry and having satisfied passed an order u/s 143(3) on 16-06-2008. It was clearly stated in the order that the assessment was completed based on the information from CIT-CIB, Hyderabad and after verification of the material produced, the income returned was accepted. This assessment was completed by Dy. CIT, Circle-I, Karimnagar. 2.1. The AO, subsequently based on the same information,has reopened the assessment an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atisfied about the genuineness of the claims, accepted the same without making any addition. On the basis of the same submissions made before the Dy. CIT and affidavit placed on record, the assessment was reopened after four years. It is submitted that there is no failure on the part of assessee in making full and true disclosure and therefore reopening of assessment on mere change of opinion is not permitted. Ld. Counsel relied on various case law. 4. Ld. DR however, supported the orders of the authorities. 5. We have perused the rival contentions and evidence placed on record. There is no dispute with reference to the fact that the then AO (DCIT, Circle-1, Karimnagar) did enquire about the deposits in the bank a/c and assessee has j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-tax Act, 1961, it implies that the Assessing Officer should have formed an opinion at the first instance, i.e., in the proceedings under section 143(3) and by initiation of the reassessment proceedings, the Assessing Officer proposes or wants to take a different view; (ii) reassessment proceedings will be invalid in case the assessment order itself records that the issue was raised and was decided in favour of the assessee. Reassessment proceedings in the said cases will be hit by the principle of change of opinion ; and (iii) reassessment proceedings will be invalid in case an issue or query is raised and answered by the assessee in original assessment proceedings but thereafter the Assessing Officer does not make any addition in the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ange of opinion. The Hon'ble Full Bench of Delhi High Court in the case of CIT Vs. Kelvinator of India Ltd., [256 ITR 1] has held as under: We also cannot accept the submission of Mr. Jolly to the effect that only because in the assessment order, detailed reasons have not been recorded an analysis of the materials on the record by itself may justify the Assessing Officer to initiate a proceedings under section 147 of the Act. The said submission is fallacious. An order of assessment can be passed either in terms of sub-section (1) of section 143 or sub-section (3) of section 143. When a regular order of assessment is passed in terms of the said sub-section (3) of section 143 a presumption can be raised that such an order has been p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of appeal proceedings also, the AR of the appellant has taken a hyper technical view in the submissions made. The AO after making enquiries has suitably disallowed the amount of ₹ 15,77,330/- as income from other source. Since, the order of the AO is self-contained, I find no reason to interfere with the order of the AO. Accordingly, the disallowance made by the AO is upheld . 10. There is neither any discussion about the submissions made by assessee nor about the satisfaction recorded by the AO nor about the objections raised by assessee in the re-assessment proceedings on jurisdiction. In fact, Ld. CIT(A) did not even comment about the veracity of reopening of the assessment. As seen from the later part of the order, he did not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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