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2014 (11) TMI 813 - HC - Income TaxValidity of reopening of assessment u/s 147 – Claim u/s 80HHC verified and accepted by AO or not – Held that:- The Tribunal rightly relied upon Commissioner of Income Tax Vs. Kelvinator of India Ltd. [2010 (1) TMI 11 - SUPREME COURT OF INDIA] wherein it has been held that the concept of 'Change of Opinion' on the part of AO to reopen the assessment does not stand obliterated after the substitution of Section 147 of the Income Tax Act, 1961, by the Direct Tax Laws (Amendment) Acts, 1987 and 1989 and that after the amendment, the AO has to have reason to believe that income has escaped assessment, but, this does not imply that the AO can reopen an assessment on mere change of opinion - the concept of 'Change of Opinion' must be treated as an in-built test to check the abuse of power - while allowing the claim of the assessee u/s 80HHC, detailed inquiry was made and only after verifying the assessee's contention, which was found to be correct, the AO had allowed the claim of the assessee - It goes without saying that once a query was raised and it was answered satisfactorily by the assessee at the time of original assessment and when the same attained finality, after the AO gave his clear finding in favour of the assessee, it was not open to the AO to reopen the assessment – the order of the Tribunal is upheld – Decided against revenue.
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