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2014 (10) TMI 224 - HC - Income TaxNotice for reopening of assessment u/s 148 – Notice issued on the basis of CBDT circular - Change of opinion – Held that:- Following the decision in Hindustan Lever Ltd. v/s. R.B. Wadkar, Asst. Commissioner of Income Tax & Others [2004 (2) TMI 41 - BOMBAY High Court] - the reasons for reopening of an assessment are required to be tested/examined as recorded at the time of issuing of notice u/s 148 of the Act - No substitution, deletion or addition to the reasons recorded at the time of issuing notice can be made to support the impugned notices either by affidavit or in the order disposing of objections - The reopening notices would stand or fall by the reasons recorded at the time when the notices were issued - the submission of Mr. Pinto that there is a failure on the part of the Petitioner to disclose truly and fully all material facts necessary for assessment cannot be accepted. The notice have been issued in reasons in support only on the basis of CBDT circular dated 8th September, 2004 which is merely an opinion on the statutory provisions – AO has to apply his own mind to form a reasonable belief that income chargeable to tax has escaped the assessment - the question of opinion on statutory provision is an issue which would only arise, if the statutory jurisdictional requirement of failure to disclose fully and truly all material facts necessary for assessment is satisfied – thus, the notice for reopening of assessment is to be set aside – Decided in favour of assessee.
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