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2017 (7) TMI 814 - HC - Income TaxReopening of assessment - notice issued to the petitioner on the ground that the items on account of interest and royalty, which are allowed as revenue expenditure in the assessment order, are on wrong premise - Held that:- It has been consistently held by the Apex Court and this Court that mere change of opinion cannot be the 'reason to believe' to reopen the assessment. This Court in a case of GKN Sinter Metals Ltd. (2015 (1) TMI 832 - BOMBAY HIGH COURT) has extensively dealt with the law in this regard and after referring to the various judgments of the Apex Court and this Court observed that mere change of opinion cannot be the basis of reopening the assessment. In the said case also, the Assessing Officer had raised the query with regard to allocation of expenditure. The petitioner gave its reply. The Assessing Officer accepted the reply and assessment order was passed. Thereafter, notice for reopening the assessment was issued. In the present case the Assessing Officer before passing the assessment order, had raised queries precisely with regard to the interest and royalty being shown as revenue expenditure. The Assessing Officer was satisfied with the reply and thereafter passed assessment order. Notice u/s 148 is issued merely because another Assessing Officer has different opinion. It is not the case that any income has escaped assessment. The notice is issued merely upon the change of opinion of the Assessing Officer, which is not permissible. - Decided in favour of assessee.
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