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2013 (7) TMI 767 - ITAT KOLKATAReopening of assessment u/s 147 - reason to believe - change of opinion - jurisdiction -- Held that:- The AO reached the belief that there was escapement of income “on going through the return of income” filed by the assessee after he accepted the return u/S 143(1) without scrutiny, and nothing more - this is nothing but a review of the earlier proceedings and an abuse of power by the AO – the reasons recorded by the AO do confirm our apprehension about the harm that a less strict interpretation of the words “reason to believe” vis-ŕ-vis an intimation issued under section 143(1) can cause to the tax regime – there is no whisper in the reasons recorded of any tangible material which came to the possession of the AO subsequent to the issue of the intimation - It reflects an arbitrary exercise of the power conferred u/s 147 - court relied on the judgement of CIT v. Kelvinator of India Ltd. (2010 (1) TMI 11 - SUPREME COURT OF INDIA) brought out the concept of “reason to belief” - the reopening of the proceeding, being merely based on ‘change of opinion’ should be considered as invalid and illegal and should be cancelled. Accordingly the notice issued under section 148 of the Income Tax Act is quashed and accordingly the order passed under section 147/143(3) is annulled –decided against revenue
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