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2015 (2) TMI 1267 - AT - Income TaxReopening of assessment - change of opinion - validity of reasons to believe - allowability of expenditure - Held that:- A detailed disclosure was made by the assessee in relation to the claim of expenditure. Reopening the assessment on the very same set of facts which were very much available at the time of the original assessment proceedings is nothing but a change of opinion. In our considered opinion one needs to give a schematic interpretation of the words “ reason to believe” failing which, section 147 would give arbitrary powers to the AO to reopen the assessment on the basis of “mere change of opinion”, which cannot be per se reason to reopen. There is conceptual difference between power to review and power to reassess. The AO has no power to review, he has the power to re-assess. But assessment has to be based on fulfillment of certain conditions and if the concept of “change of opinion” is removed, then, in the garb of reopening of assessment, review would take place. Supreme Court in the case of CIT vs. Kelvinator of India India [2010 (1) TMI 11 - SUPREME COURT OF INDIA] has held that the AO must have some tangible material for reopening the assessment. In the case in hand, we do not find any new tangible material evidence on the basis of which the AO has reopened the assessment. - Decided in favour of assessee.
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