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2017 (8) TMI 117 - AT - Income TaxReopening of assessment - Sale tax liability - Held that:- From the reasons recorded, it is apparent clear that nothing new material has came in the notice of AO, subsequently in the course of assessment proceeding. The assessee in the Note of Tax Audit Report has clearly mentioned this fact. Moreover, the assessee in its objection dated 05.10.2010 clearly stated that the Sales tax liability to the extent of ₹ 1,88,98,732/- was offered for taxation for AY 2007-08. The same AO taxed the Sale tax collected in earlier year in the AY 2007-08. As per our considered opinion the Revenue is not entitled to tax the same amount twice. Hon’ble Apex Court in CIT vs. Excel Industries Ltd. [2013 (10) TMI 324 - SUPREME COURT] held that when the rate of tax remain the same and the assessee has paid the tax in the subsequent accounting year then the dispute raised by the Revenue is entirely academic and therefore, there is no need for Revenue to continue with the litigation when it is quite clear that not only it was fruitless but also that it meaning have added anything must to the public coffer. From the factual discussion and the legal position, we hold that no income was escaped from the assessment. Moreover, the impugned income (Sale tax liability) was offered by assessee in the subsequent AY was merely a change of opinion. The re-opening based on change of opinion cannot per se be reasons of re-opening u/s 147 thus it was invalid. Thus we accepted the appeal of the assessee on ground No.2. As we have held that re-opening of the assessment as invalid. Hence, the discussion on other grounds of appeal is become academic. In the result the appeal of the assessee is allowed.
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