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2017 (2) TMI 915 - AT - Income TaxReopening of assessment - treating the loan amount waived by the Bank as income u/s 41(1) read with section 28(iv) of the Income Tax Act - Held that:- Assessment was reopened only based on the information which was already available on the records and no new tangible materials have come on record suggesting escaped of income in respect of waiver of loan on OTS by Banks which was claimed as deduction by the assessee. It is very apparent from the reassessment order that the assessing officer came to the conclusion that income had escaped assessment for the reason that assessee claimed deduction of ₹ 30.07 crores as waiver of loan on account of one time settlement with bank and NCD holders and this amount was credited to P&L account as income, but was claimed as deduction in the computation of income and therefore income had escaped assessment. It is not the case of the revenue that the assessee has not submitted any details in respect of the loan waived by the banks, but, it was the contention of the assessing officer that there is no change of opinion which in our considered view is not correct. The assessee has furnished all the information and a detailed submission along with case law in its support for its claim for deduction of waiver of loan by Banks on OTS. We also find that there is nothing on record to suggest that the revenue has got tangible material in its possession after completion of assessment suggesting escapement of income. Thus reopening of assessment u/s 147 is only on mere change of opinion by the assessing officer on some set of facts which were already available on record before him while completing the original assessment u/s 143(3) of the Act. Thus, following the decision of Hon’ble Supreme Court in the case of Kelvinator India Ltd. [2010 (1) TMI 11 - SUPREME COURT OF INDIA ] we hold that reassessment made u/s 143 r.w.s. 147 is bad in law. Hence we quash the reassessment order passed by the assessing officer. - Decided in favour of assessee.
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