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2015 (3) TMI 577 - HC - Income TaxReopening of assessment - excessive and bogus claim of labour charges - Held that:- In this case, the labour charges paid by the Respondent for Assessment Year 2004-05 was subject matter of enquiry during the regular assessment proceedings. This enquiry was in the context of the fact that there were outstanding labour charges payable as was evidenced from the Respondent-Assessee's balance sheet filed along with return of income. A detailed enquiry was made into the labour charges and the same was responded by relating it to the quantum of work done. Thus, in the present facts, the Assessing Officer has considered the material available on record and formed an opinion holding that the labour charges have to be allowed. No further tangible material has been obtained in the following Assessment Year, warranting a reopening of assessment. Thus, the attempt to reopen the notice would be clear case of change of opinion as formed during the regular assessment proceedings and cannot be sustained. The contention urged by Revenue that as the Revenue's Appeal for the Assessment Year 200506 has been admitted, this appeal should also be admitted is not required to be considered. This is because, we find that the jurisdictional requirement of issuing the notice under Sections 147 and 148 of the Act is not satisfied. This is threshold issue and, therefore, the result of the Revenue's appeal for Assessment Year 2005-06 would not in any manner affect the requirement of jurisdictional satisfaction for issuing notice for reopening under Sections 147 and 148 of the Act. In view of the decision of this Court in NYK Line (India) Ltd. (2012 (2) TMI 283 - BOMBAY HIGH COURT ), no substantial questions of law arises for our consideration - Decided in favour of assessee.
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