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2010 (9) TMI 405 - HC - Income TaxReassessment Notice Income escaping assessment One must treat the concept of `change of opinion' as an in-built test to check abuse of power by the Assessing Officer. Hence, afterApril 1, 1989, the Assessing Officer has power to reopen, provided there is `tangible material' to come to the conclusion that there is escapement of income from assessment. Reasons must have a live link with the formation of the belief. Our view gets support from the changes made to section 147 of the Act, as quoted hereinabove. Under the Direct Tax Laws (Amendment) Act, 1987, Parliament not only deleted the words `reason to believe' but also inserted the word `opinion' in section 147 of the Act. However, on receipt of representations from the companies against omission of the words `reason to believe', Parliament reintroduced the said expression and deleted the word `opinion' on the ground that it would vest arbitrary powers in the Assessing Officer. The petitioner-company has also made wrong claim under section 80HHC treating the interest receipt as export incentive. Therefore the second respondent has reason to believe that the income chargeable to tax has escaped assessment in view of the failure on the part of the assessee-company to disclose true and full material facts as required by the proviso to section 147 Reassessment proceedings cannot be quashed Writ petition not maintainable
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