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2016 (10) TMI 583 - AT - Income TaxValidity of reopening of assessment - unexplained investment - Held that:- As while completing the original assessment, the facts with regard to surrender statement of the assessee during the course of survey of ₹ 10,12,000 as unexplained investment in excess stock was available before the AO, but he did not act on it for the reasons best known to him. But once he has already applied his mind to these facts and has opted not to make an addition in this regard, he cannot make addition of the same by resorting to the procedure for reopening of assessment u/s. 147 of the Act. If it is allowed to be done, it would amount to reopening on account of change of opinion which is not permissible in the eyes of law. It has also been held by the various High Courts that once the AO has applied his mind on particular facts, the same facts cannot be used for reopening of the assessment. Therefore, I find no merit in reopening of the assessment. Accordingly hold that since the reopening of assessment is on account of change of opinion, it is bad in law and is not sustainable in the eyes of law. - Decided in favour of assessee.
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