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2016 (6) TMI 491 - HC - Income TaxReopening of assessment - over invoicing of the purchase - Held that:- Order of assessment dated 30.12.2010 did not make any disallowance or addition on over invoicing of the purchase. Thus, the Assessing Officer, ofcourse without citing reasons, accepted the explanation of the assessee regarding the sale and purchase of goods in question. With this background, if we revert back to reasons recorded. It is this very issue which the Assessing Officer now wants to reopen by exercising powers under Section 147 of the Act. In the reasons recorded, he has stated that the assessee purchased goods worth ₹ 80.51 lacs from a sister concern which was purchased by the seller for ₹ 49.01 lacs and, therefore, there was over invoicing of the purchase to the extent of ₹ 31.49 lacs. He, therefore, wanted to disallow such sum of ₹ 31.49 lacs under Section 40A(2)(b) of the Act. The attempt on part of the Assessing Officer is, thus, clearly based on change of opinion, which would simply not be permissible. - Decided in favour of assessee
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