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2014 (11) TMI 765 - AT - Income TaxValidity of reopening of assessment - Change of opinion - Whether the CIT(A) was justified in confirming the disallowance of expenditure upto 50% out of the total disallowance made by the AO on account of administrative expenses – Held that:- Reopening was done on the ground that from the assessment records it transpired that computation of loss from business by allowing deduction towards administrative expenditure was irregular as there was no business activity during the year - assessee contended that the computation of loss from business by allowing deduction of administrative expenditure was examined by the AO - AO has held that the assessee has adjusted the loss with Long Term Capital Gain from sale of land and held that it was not allowable - It was clearly evident that AO was conscious of the administrative expenses claimed by the assessee - It also cannot be said that assessee’s claim of administrative expenses was to be disallowed at the very first glance as the assessee has also shown income from operation – relying upon CIT vs Ganga Properties Ltd. [1989 (5) TMI 10 - CALCUTTA High Court] – assessee rightly contended that there was change of opinion and in this view of the matter reopening is not sustainable – reference is also made to CIT vs Kelvinator of India Ltd. [2010 (1) TMI 11 - SUPREME COURT OF INDIA] - there was change of opinion and the reopening is not valid – Decided in favour of assessee.
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