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2016 (3) TMI 831 - HC - Income TaxReopening of assessment - ITAT upholding the decision of CIT(A) wherein annulled the re-opening of assessment proceedings by stating that it was a mere change of opinion based on the opinion/views of audit party - Held that:- As can be seen from the reasons recorded, all that is reflected therein is the opinion of the audit party that 0.5% should be considered as reasonable shortage and excess shortage should be disallowed and accordingly an excess shortage of 2.02% is required to be disallowed. It is the opinion of the audit party that excess shortage had been disallowed resulting into an underassessment to the tune of ₹ 33,04,144/-. Thus, from the reasons recorded, there is nothing to disclose that the Assessing Officer has formed any opinion that income chargeable to tax has escaped assessment All that the reasons recorded reflect is the opinion of the audit party. Section 147 of the Act provides that if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may reopen the assessment in terms thereof. Thus, it is the satisfaction of the Assessing Officer which is necessary for reopening the assessment. In the present case, on a plain reading of the reasons recorded, it is evident that no such satisfaction has been recorded by the Assessing Officer. The Commissioner (Appeals), therefore, rightly came to the conclusion that this is a case of clear change of opinion based on conjectures and a case where the opinion was not of the Assessing Officer but clearly of the audit party. The Tribunal, therefore, did not commit any error in upholding the order passed by the Commissioner (Appeals). - Decided in favour of assessee
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