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2006 (11) TMI 181 - BOMBAY HIGH COURTReopening of the assessment - Validity notice issued u/s 148 - change of opinion - HELD THAT:- It is quite clear that the petitioner was granted depreciation allowance on the intangible assets in the nature of know-how purchased by it. A regular assessment order was passed u/s 143(3) of the Income-tax Act. In reply to the director of audit, the Assessing Officer had opposed the reopening. In spite of the same, he has reopened the assessment. It is, therefore, difficult to say that he has formed his own opinion that the income has escaped assessment. Secondly, it is not at all a case that the petitioner has not disclosed anything to the respondents. The petitioner has given full particulars of the intangible assets and it has maintained that it is eligible for the depreciation. We may not express our opinion on the merits of the claim of the petitioner. But the fact remains that as far as this assessment year 2003-04 is concerned, the stand taken by the petitioner was accepted by the respondents on the merits and even after disagreeing with the audit objection, as a second thought on the objections from the auditors, he has reopened the assessment. In the reasons to reopen as well as in the decision on the objections, he has nowhere stated as to how the income has escaped assessment. In our view, reopening of the assessment without any basis and merely a change of opinion is not permissible while exercising the powers u/s 147 r/w section 148 of the Income-tax Act. Thus, we have no option but to allow this petition. The petition is allowed in terms of prayer (a), whereby the notice dated March 2, 2006, issued u/s 148 of the Income-tax Act, the notice dated June 6, 2006, issued u/s 142(1) and the decision on the objections dated October 6, 2006, shall get quashed.
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