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TMI Blog2018 (1) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... ame and completed the assessment. There is no other fresh material available to the assessing officer. Since the assessee has furnished the details, and the assessing officer has reopened the assessment, on the basis of same information which was already examined by him and completed the assessment u/s 143(3), reexamination of the same material would amount to revision of the same issue and change of opinion. It is settled issue that to reopen the completed assessment, tangible material is required. If no new information is available to the assessing officer, assessments already completed cannot be reopened merely because of suspicion or surmises. Therefore, we agree with the Ld.CIT(A) that the assessment is reopened on mere change of opinion but not on any fresh information and there is no tangible material available to the department. Accordingly, we uphold the order of the Ld.CIT(A) and dismiss the appeal of the revenue on this ground. - Decided against revenue - I.T.A.No.483/Viz/2014, Cross Objection No.02/Vizag/2015 And ITA No.483/Vizag/2014 - - - Dated:- 30-8-2017 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER For The Assessee : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wn the assessment order. Aggrieved by the order of the Ld.CIT(A), revenue is in appeal before us. 4. Appearing for the revenue, Ld.DR argued that the notice was issued u/s 148 on 31.03.2013. There is an office procedure for service of the notice in the department. As per the procedure after signing the notice, the assessing officer will send the notice to the assessment section and the assessment section after making the entries in the concerned registers would deliver the notice to the despatch section and the despatch section delivers the entire dak to the post office. The Range is headed by the Addl / Joint Commissioner of Income Tax and 4 to 5 assessing officers would be working under the Range. The despatch section is under the control of the Range Office but not under the control of the Assessing Officer. Therefore the Ld.DR contended that signing of the notice and delivering to the dak section should be taken as date for issuance of notice u/s 148. In support of his argument, the Ld.DR submitted the xerox copy of dak register of 31.03.2013 as Annexure A‟. According to the Ld.DR, the date of issuance of notice to be reckoned as 31.03.2013 the date of delivery to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the department on 31.03.2013 itself and it was delivered to the post office on 03.04.2013. In view of non discussion of internal procedure in the cited case, the same is distinguishable and not applicable in the assessee‟s case. Since the order sheet of the assessment record, the despatch register clearly shows that the date of issue of notice was 31.03.2013, we hold that the notice u/s 148 was issued on 31.03.2013. Since the assessment is reopened within 4 years from the end of the relevant assessment year, the assessing officer has rightly reopened the assessment with the approval of the Addl. Commissioner of Income Tax. Therefore, we set aside the order of the Ld. CIT on this issue and allow the appeal of the revenue. Revenue‟s appeal on this issue is allowed. 6. The second issue in ground Nos. 5 and 6 are related to the change of opinion. The assessing officer issued notice u/s 148 after recording the reasons as under : 2. The reasons for reopening the assessment is that there in respect of following items, no purchases were shown by the assessee, but the closing stock was increased compared to the opening stock:- S.No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fference raw-material as shown in closing stock and opening stock is at ₹ 2,04,310/ - and therefore, the unaccounted purchases would be much more than the of the above value. (b)\ In the Schedule for Purchases, the assessee has shown Hawai Straps at ₹ 23,400/-. As per the Trading Account, there were sales at ₹ 78,72,318/- and after reducing the gross profit at 20% amounting to ₹ 15,74,458/-, the net amount comes to ₹ 62,97,860/- which is the cost of finished goods in the hands of the assessee. As per the assessee the cost of finished goods is ₹ 45/- per pair, hence the total pairs sold worked out to ₹ 1,39,950/-. However the assessee has shown an amount of ₹ 25,82,350/- towards the purchase of hawai sheets at the cost of ₹ 95/- per piece. The total sheets come to ₹ 27,181/-. The manufacturer will make minimum 10 pairs per one sheet and as per the purchased hawai sheets, the total pairs or hawai cheppals would have made is 2,69,300 (2,71,810 - 2,510 not used) but as per the above calculation the assessee has shown only pairs sold at ₹ 1,39,950 and after reducing this there were 1,29,350 pairs which are not accounted f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hange of opinion and there is no tangible material for reopening the assessment. Ld.CIT(A) held the issue in favour of the assessee stating that the assessing officer has completed the original assessment made u/s 143(3) by calling all the details and the books of accounts and the assessing officer has no fresh information to reopen the assessment and the reopening of assessment is mere change of opinion. Ld.CIT(A) also relied on the decision of the Hon‟ble High Court of Bombay in the case of Asian Pains Ltd. Vs. Dy.Commissioner of Income Tax ANR [308 ITR 185] and the decision of Hon‟ble Supreme Court in the case of Commissioner of Income Tax Vs. Kelvinator India Ltd. [320 ITR 561]. Aggrieved by the order of the Ld.CIT(A), the revenue is in appeal before us. 7. Appearing for the revenue, the Ld.DR argued that the assessing officer reopened the assessment duly recording the reasons and as per the reasons recorded, the assessing officer did not examine the issues relating to the opening stock and closing stock and purchases with respect to the items recorded in the reason i.e. DOP Oils, CPW Oils, Foaming Powder etc.. and the consumption material and the production wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation already available in the assessment records, with a suspicion of unaccounted purchases and unaccounted sales merely analyzing the material already available on record. With regard to the purchases of DOP Oils, purchase of Hawai straps and unaccounted sales the information relating to purchases and sales, quantitative details of purchases etc. was called for by the AO while completing the assessment. When AO called for the specific information, the argument of the Ld.DR that it was not verified by the AO is untenable. We are of the view that information would be called for verification and for not increasing the volume of file. The assessing officer analysed the purchases of Hawai straps and reworked the possible manufacture of pairs with his guess work and recomputed the unaccounted investment. Similarly, the assessing officer has analysed the Hawai sheets and estimated the total number of pairs that can be manufactured and estimated unaccounted sales. The entire analysis was made with the available information on record and there is no direct information with regard to escapement of income either in purchases or in sales. The entire information with regard to the opening sto ..... X X X X Extracts X X X X X X X X Extracts X X X X
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