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2015 (2) TMI 820 - HC - Income TaxReopening of assessment - assessee is following the exclusive method of accounting for CENVAT, thus the assessee had not included the amount of ₹ 4,69,54,465 in its closing stock - Held that:- AO has sought to reopen the assessment previously framed. The very issue of accounting treatment that the unutilized Cenvat credit should receive for the purpose of valuing the closing stock has been examined by the Assessing Officer. Entire relevant materials had been placed before him. No addition on this count was made, without of course, giving any reasons. In other words, the Assessing Officer, for whatever reasons has chosen not to opine after having made the scrutiny on the very issue of the accounting method. In the absence of any tangible material that existed already before the Assessing Officer, the notice for reopening issued by the Assessing Officer should be held to have been based on a mere change of opinion. In the instant case, we are of the firm opinion that the Assessing Officer cannot be permitted to go ahead with the reassessment proceedings, in view of the fact that he raised the query as to why the unutilized Cenvat credit should not be included in the closing stock. He was aware fully regarding the accountability of the Cenvat credit, its utilization and the fact that no wrong benefit was availed of by the assessee. He still preferred not to make any addition on account of the accountant ability of such credit and, hence, he must be held to have formed an opinion and this exercise is nothing but an attempt to review its own order, which is impermissible under the law. -Decided in favour of assessee.
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