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2013 (9) TMI 365 - AT - Income TaxReopening of Assessment - reason to believe - change of opinion - Held that:- The Assessing Officer had miserably failed to show that there was any tangible material to hold that there was escapement of income from assessment - Assessing Officer not only examined the documents/evidence originally submitted by the assessee but had asked for further documents – The notice issued under section 148 of the Act was nothing but mere change of opinion - The issues which have already been considered in the original assessment cannot be reappreciated in reassessment proceedings under the garb of income escaping assessment - If the Assessing Officer had not given any finding after considering the evidence on record, it cannot be said that the income had escaped assessment on account of concealment of income of the assessee. Relying upon Kelvinator of India Ltd.[ 2010 (1) TMI 11 - SUPREME COURT OF INDIA ] - the Assessing Officer had power to reopen the assessment provided there is "tangible material" to come to the conclusion that there was escapement of income from assessment - the information was supplied by the assessee, if the Assessing Officer fails to take note of the same or does not appreciate the evidence from all dimensions in the first instance, he cannot be permitted to reopen the assessment under section 147 of the Act to cover up his own folies - Once the entire evidence as required by the Assessing Officer was submitted by the assessee, duty was cast upon the Assessing Officer to take cognisance of the evidence and pass assessment order under section 143(3) of the Act - The Assessing Officer cannot review his own order under the guise of section 148 and reappreciate the evidence which was already before him at the time of original assessment – Decided against Revenue. Method of accounting in certain cases - Whether u/s 145A the excise duty element cannot be added to the value of closing in stock on the last day of the accounting year - Following Loknete Balasaheb Desai S. S. K. Ltd. [2011 (6) TMI 48 - BOMBAY HIGH COURT] - central excise liability was not incurred and consequently the addition of excise duty made by the assessing officer to the value of the excisable goods was liable to be deleted - The assessee had provided for excise duty on closing stock in accordance with AS 2 - The assessee in its letter had categorically stated that the amount appearing in annexure 10B of tax audit report represents excise duty provision on the closing stock of finished goods as on March 31, 2005 - This amount was paid before the clearance of goods from the factory prior to the date of tax audit report as certified by the tax auditors - An amount was debited in the profit and loss account under the head "manufacturing and other expenses" - This amount represents difference between opening provision of excise duty on stock as on April 1, 2004 and the excise duty on closing stock as on March 31, 2005. The Assessing Officer has erred in coming to the conclusion that since the sale is net off excise duty, the debit towards excise duty in the profit and loss account cannot be allowed. With regard to compliance with the provisions of section 43B was concerned, the assessee had stated that the amount of excise duty debited in the profit and loss account had been paid in the next year before the due date of filing of return and therefore, disallowance on this ground was not warranted.
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