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2023 (2) TMI 716 - BOMBAY HIGH COURTReopening of the assessment u/s 147 - Reason to believe - change of opinion - HELD THAT:- No hesitation to hold that there was no failure on the part of the assessee to disclose fully and truly the material facts, nor there was any tangible material with the A.O. which would have otherwise justified the reopening of the assessment by issuing the notice impugned. In the present case, the AO has not specifically mentioned in the order, what was the tangible material, to conclude that there was an escapement of income. The AO has also failed to aver what material fact the assessee has failed to disclose fully and truly. It is evident that based on the case of Milan Saini who had disclosed his income under the head ‘income from salary’ that the AO sought to reopen the case of the assessee. Apart from different heads on which the assessees’ have offered their income to be taxed i.e. there is no other ground based on which the AO is seeking to reopen. It is clearly the very same material on which a different view is being taken. The case of Phool Chand Bajrang Lal [1993 (7) TMI 1 - SUPREME COURT] relied upon by Mr. Kumar can be differentiated on the facts, in as much as the managing director of the Calcutta company Mr. Surana had made a confession about his business activity being that of a name lender and had not advanced any loan to the assessee in that case. As in the present case there is a full and true disclosure by the petitioner, which transaction has been accepted under the head claimed by the petitioner. Consequently, merely because another director of the same company had disclosed the income received differently, cannot be a ground for reopening and the same is evidently a change of opinion not only based on conjectures and surmises but also a case of blindly relying on information and borrowed satisfaction which is not permitted for reopening - It is an imperative duty of the authorities to be updated with the law and to apply it to the case at hand before taking decisions and passing orders. Decided in favour of assessee.
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