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2014 (8) TMI 8 - HC - Income TaxNotice for reopening of assessment u/s 148 Income escapement Change of opinion - Whether the income of the assessee had escaped assessment on account of failure on the part of the assessee to disclose, fully and truly, the material facts necessary for the assessment Held that:- The depreciation on computer software is either to be charged at 60% or in certain cases, expenditure on computer software is treated as revenue expenditure - it is apparent that the dispute raised with regard to rate of depreciation by the AO merely indicates a change of opinion and there has been no failure on the part of the assessee to disclose any material fact in this regard - with respect to the sum received as non-refundable advance from Energy Ventures, the assessee had furnished clarifications with regard to the claim of deduction made by the assessee in respect of this sum received from Energy Ventures as nonrefundable advance - assessee had made full and complete disclosure with regard to the deduction claimed on account of the sum. The AO has sought to reopen the assessment not on account of failure on the part of the assessee to disclose any material particulars, but on account of the change of opinion with regard to certain deductions claimed and allowed by the assessee - assessment cannot be reopened on mere change of opinion relying upon CIT v. Kelvinator of India Limited [2010 (1) TMI 11 - SUPREME COURT OF INDIA] - a mere change of opinion cannot form the basis for reopening of assessment. Although the AO has recorded that he has reasons to believe that income chargeable to tax exceeding ₹ 1 lac. had escaped assessment, as the assessee had not disclosed, fully and truly, all material facts necessary for his assessment for the relevant assessment year, there is no allegation made in the reasons as furnished by the AO that there had been a failure on the part of the assessee to disclose, fully and truly, any particular fact that was necessary for the assessment - thus, the proceeding initiated by the AO for reopening the assessment for the AY 2006-2007 is without authority of law Decided in favour of Assessee.
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