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2014 (11) TMI 681 - AT - Income TaxReopening of assessment u/s 147 r.w 148 - Expenses claimed under the head prior paid expenses relates to current AY or not - Held that:- The assessee has claimed a deduction in the Profit & Loss A/c for the year ended on 31.03.2006 under the head 'Prior Period & Exceptional items' (Net of tax) - not only assessee has disclosed full particulars with regard to prior period and exceptional items in its final accounts, but, explanatory notes was also appended with the final accounts with regard to such claim - AO at the time of original assessment has enquired into the aspect and called for details from assessee and after examining the information submitted by assessee, he has completed assessment - AO while completing assessment has also disallowed a part of expenditure relating to previous year - not only assessee has disclosed all material facts relating to prior period and exceptional items, but, AO while completing original assessment has examined the same and completed assessment accordingly - there are no tangible material before AO to form the belief that income has escaped assessment - Only on reappraisal of the materials available and considered at the time of original assessment and which were also examined during original assessment, AO has reopened assessment u/s 147 of the Act. AO himself has expressed the fact that on review he has noted assessee has claimed deduction in the P&L Account towards prior period and exceptional items, which is not relatable to current year - an issue which has already been considered and decided in original assessment cannot be subjected to reopening u/s 147 as it will amount to review of earlier assessment order – in CIT Vs. Kelvinator India Ltd. [2010 (1) TMI 11 - SUPREME COURT OF INDIA] the scope of section 147 had been discussed in details – here AO has completed original assessment after making due enquiry and proper application of mind on the issue on which assessment was reopened - Only because AO has accepted the deduction claimed towards prior period and exceptional items without making any reference, it cannot be said that the issue was not examined by AO - reopening would amount to change of opinion or a review of assessment order earlier passed which is not permissible in law – the order of the CIT(A) is upheld – Decided against revenue.
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