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2014 (7) TMI 1061 - AT - Income TaxReopening of assessment u/s 147 – Change of opinion – Held that:- The assessee has furnished the details of the sub-contractor expenses and “work expenses” which had included the payment made to sub-contractors - the basic information was very much available with the AO - The onus was on the AO to further investigate - during the course of Appellate Proceedings, it cannot be judge that how all accounts and related evidences were examined by the AO during the assessment proceedings - The only thing which can be judged is that the basic information was available on record before him and on the scrutiny of the same the AO had not made any disallowance - the possibility of forming an opinion about the expenditure claimed by the assessee could not be ruled out - the AO is not entitled to change the opinion even after the reopening has been done within four years. Following the decision in GUJARAT POWER CORPORATION LTD Versus ASSISTANT COMMISSIONER OF INCOME TAX [2012 (9) TMI 69 - Gujarat High Court] -there was no evidence in possession of the AO that the assessee in fact was involved in such practice - AO had reason to believe that to verify the identity of sub-contractors and genuineness of the work, examination is required - It was not the reason to believe that an income had escaped assessment but he has reason to believe that an examination is required - There should be a definite reason so as to form a belief that some income had escaped assessment - Then only reopening is permissible – it was presumptive in nature and proceeded merely to further investigate the case on the point on which an inquiry had already conducted by the AO during the course of original assessment order - Such an action of reopening cannot be approved – thus, the order of the CIT(A) is upheld – Decided against revenue.
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