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2017 (8) TMI 718 - AT - Income TaxValidity of reopening of assessment u/s. 147 - assets transferred to UPS SCS (India) P. Ltd. - Held that:- A.O. having examined the issue in the original assessment proceeding and formed an opinion that the amount received by the assessee on account of transfer of human resource and customer relationship, is not taxable, the reopening of the assessment on the issue by revisiting the very same material which were considered at the time of original assessment, amounts to review of the earlier order on a mere change of opinion, which is impermissible. In this context, we rely upon the decision of the Hon’ble Supreme Court in the case of CIT vs. Kelvinator of India Ltd. (2010 (1) TMI 11 - SUPREME COURT OF INDIA), wherein held that reopening of assessment cannot be made on the basis of mere change of opinion. The Hon’ble Supreme Court observed, once an opinion was formed by the A.O. while completing the original assessment, it cannot be reviewed by taking recourse of section 147 of the Act. The issue relating to the amount received by the assessee’s transfer of various assets including human resources and customer relationship was not only examined by the A.O. during the original assessment proceeding, but the A.O. also formed an opinion while accepting the assessee’s claim of non taxability of the said amount. Therefore, the A.O. having formed an opinion during the original assessment proceeding, it cannot be a subject matter of review in the garb of reassessment proceeding u/s. 147 of the Act. Therefore, we hold that the initiation of proceeding u/s. 147 of the Act in the present case is invalid. Accordingly, we quash the impugned assessment order passed u/s. 143(3) r/w s. 147 of the Act - Decided in favour of assessee.
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