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2016 (12) TMI 1083 - HC - Income TaxValidity of reopening of assessment - proceedings initiated solely at the instance of audit party and solely on the audit objections - grant of deduction under Section 35 - Held that:- On perusal of the file and notings and the relevant documents, it appears that the re-assessment proceedings have been initiated at the instance of audit party and solely on the audit objections. From the correspondence between the Assessing Officer and Principal Director of Audit [Central], it appears that even the Assessing Officer justified grant of deduction under Section 35 of the Act granted while passing original assessment order and in fact, he opined that the audit objection be dropped. While making such opinion, in fact, he specifically observed that the assessee has legitimately claimed deduction under Section 35 [2AB] of the Act. As observed herein above, in fact to the query raised by the audit party, the Assessing Officer had even opined to drop audit query by observing that the assessee was entitled to deduction claimed under Section 35 [2AB] of the Act. Under the circumstances, in view of the aforesaid ground alone, the impugned notice cannot be sustained and the same deserves to be quashed and set-aside. A speaking order came to be passed by the Assessing Officer in paragraph 4 of the assessment order granting deduction under Section 35 of the Act post August 2010. In that view of the matter, the subsequent re-assessment proceedings initiated by another Assessing Officer can be said to be a change of opinion, and therefore, on a mere change of opinion, the re-assessment proceedings cannot be sustained. - Decided in favour of assessee
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