2018 (12) TMI 968 - ITAT MUMBAI

Reopening of assessment u/s 147 - change of opinion - entitled to benefit of section 12A - Held that:- The assessee furnished audited financial statement for the year ending 31/03/2008, computation of total income and other relevant material for making its claim. It is not the case that any new tangible material came to the notice of the AO at the later stage. Rather, it is a case, where the AO incorrectly applied the provision of the Act, therefore, on the same set of facts/claim, merely on the basis of “change of Opinion” the completed assessment under section 143(3) is not permissible. It is noteworthy that at the relevant time, the assessee was entitled to benefit of section 12A of the Act, therefore, from this angle also, AO was not within the legal parameters to reopen the completed assessment. Thus, so far as, reopening is concerned, we are of the view that it was wrongly reopened, consequently, this ground of the assessee is allowed