9911796707
TMI Blog2025 (2) TMI 573X X X X Extracts X X X X X X X X Extracts X X X X ..... t which was available with the AO while framing the assessment. Now on the same material AO has tried to cover up the error and omission by way of reopening the assessment without any fresh material which is nothing but mere change of opinion. No new information and/ or tangible material was found and the formation of any opinion based on same facts which were then available with the AO at the time of original assessment is not permissible
By respectfully following the judgement of Kelvinator of India Ltd. [2010 (1) TMI 11 - SUPREME COURT] we are of the considered opinion that the reopening in the instant case is not based on fresh material and is in the nature of mere change of opinion. Accordingly, the notice issued u/s 148 is hereby quashed. The ground of appeal No 1 of the assessee is allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... ion by the ld. CIT(A). Since the assessee opted for alternate remedy where the ld. CIT(A) has made inordinate delay in disposing the petition of the appellant, the circumstances are beyond its control. Thus after considering the reasons stated and the judicial pronouncements relied upon by the assessee, we find there is a reasonable cause in delay in filing the appeal which is hereby condoned and the appeal is decided on merits. 6. Brief facts are that assessee is a company engaged in the business of manufacturing Black & White TV picture tubes and also engaged in the trading activity. The return of income for the year under appeal was filed on 27.10.2017 at a income of Rs. 6,22,510/- after claiming various adjustments. The assessment was originally completed u/s 143(3) vide orders dt. 09/12/2009 accepting the income returned by the assessee. Thereafter reassessment proceedings were initiated by issue of notice u/s 148 on 17/02/2012 and the reassessment order was passed u/s 147 r.w.s. 143(3) dt. 27.02.2013 by making addition of Rs. 3,69,37,000/- by making disallowance of the Bad-debts claimed by the assessee. 7. In first appeal, ld. CIT(A) dismissed the appeal of the assessee and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings and after due application of mind on such material available, the assessment order was passed u/s 143(3). Thus now again revisit the same material to reassess the income is nothing but mere change of opinion. Ld. A/R also submitted that the reassessment proceedings are solely based on the objection raised by the audit party and no independent application of mind by the AO before recording satisfaction of escaped income. For this he refer page 57 of the paper book which is the copy of the audit memo issued by the audit party. According to ld.A/R if the objection of the audit party is read together with the reasons recorded it appears that AO has simply proceeded with the objection of the audit party where the language and phraseology used is almost identical thus it is clear that the AO has not even perused the assessment records nor applied has mind before recording the satisfaction and simply copied the audit objection in the reason recorded. Based on these facts and the circumstances of the case ld. A/R prayed that the reassessment proceedings are merely change of opinion and solely based on the audit objections thus the same deserves to be quashed. 11. On the other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... off, in which a sum of Rs. 3,69,37,000/- (13337000 + 1084000 +22516000) pertains to investment. Aa this amount was not offered as tax earlier, as such the same should have been added back to the income of the assessee. Thus this as resulted in underassessment of income by Rs. 3,69,37,000/-. I have therefore, reason to believe that an amount of Rs. 3,69,37,000/- represents income of the assessee for AY 2007-08 which has escaped assessment within the meaning of section 147 of the Income Tax Act, 1961. Therefore, a notice u/s 148 of the Income Tac Act 1961, is required to be issued and served upon the assessee company to assess he income escaped as stated hereinabove." 13. During the course of assessment proceedings the assessee has objected the reopening and filed a details objection vide letter reproduced at pages 2-4 of the assessment order. Such objections were disposed off by the AO in the assessment order itself wherein the AO observed that certain factual errors were brought to the notice by the audit party and such objection of the audit party constitute the character of fresh information. From the perusal of the reasons recorded as well as perusal of the observation of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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