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2011 (4) TMI 967 - HC - Income TaxReopening of assessment - Exclusion of interest income while computing book profit – Change of opinion - according to the respondent, the interest of Rs. 2,43,927/- which is earned out of business receipt is not business income. It was submitted that while framing the original assessment, the petitioner claimed this interest of Rs. 2,43,927/- to be business income which came to be accepted by the then Assessing Officer. Now, the present Assessing Officer, on a mere change of opinion, seeks to reopen the assessment on the ground that the said interest is taxable under other sources, hence, to that extent, the business income is less and, therefore, to that extent remuneration payable to the partners is to be reduced – Held that:- Once the view taken by the Assessing Officer is a plausible view, reopening of assessment on the ground that another view which is more beneficial to the revenue is possible, is nothing but a mere change of opinion. In the circumstances in the light of the decision of the Supreme Court in the case of Kelvinator of India Ltd. (2010 -TMI - 35201 - SUPREME COURT OF INDIA) , wherein it has been held that one needs to give a schematic interpretation to the words "reason to believe" failing which, section 147 would give arbitrary powers to the Assessing Officer to reopen assessments on the basis of "mere change of opinion", which cannot be per se reason to reopen; the reopening of assessment is bad in law, petition succeeds and is accordingly allowed, notice issued by the respondent under section 148 of the Act is hereby quashed and set aside
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