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2015 (1) TMI 307 - AT - Income TaxValidity of re-opening of assessment - Change of opinion - Held that:- assessee vide letter enclosed the documents which are available on the letter and vide document No.5 product-wise break-up of unearned commission was furnished, the explanation of which was made available at Page-2 of the paper book. The product wise break-up is further available at page-5 of the paper book which was made available to the AO during original assessment proceedings. The AO raised various queries to which the assessee vide letter dated 26/12/2005 furnished a detailed reply - The totality of facts are clearly indicating that during original assessment proceedings the material facts were produced and satisfactorily explained by the assessee which were duly examined by the AO. - Even during original proceedings the AO did not make any addition/disallowances, meaning thereby, he was satisfied with the explanation of the assessee. When the primary facts necessary for assessment are fully and truly disclosed, the ITO is not entitled to re-open the proceedings merely on the basis of change of opinion. Having second thought on the same material and omission to draw the correct legal presumption during original assessment do not warrant the initiation of proceeding u/s. 147 of the Act. Provisions of section 147, as amended with effect from 1.4.1989 are contextually different and the cumulative conditions spelt out in clauses (a) and (b) of sec. 147, prior to its amendment, are not present in the amended provision. The only condition for action is that the AO should have reason to believe that income has escaped assessment. Viewed in that angle, power to re-open the assessment is much wider under the amended provision. However, such power is not unbridled one. It is hedged with several safeguards conceived in the interest of eliminating room for abuse of this power by the AO. - undisputedly the material facts were available before the AO during original assessment proceedings itself. Therefore, in our humble opinion the ld. AO was unjustified to re-open the assessment which was framed on due application of mind after examining the facts. - Decided against Revenue.
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