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2017 (9) TMI 461 - AT - Income TaxReopening of assessment - overdue interest and audit fees - proof of adequate inquiry - no opinion v/s change of opinion - Held that:- No opinion had been formed in the original assessment order regarding these two issues. Hence, there is no change of opinion involved in the subsequent reopening of assessment. Thus, the peal of the appellant that there was full application of mind by the AO on these issued in the original assessment proceedings is not at all borne out by the record, and is therefore not acceptable. Thus, there is no reason to interfere in the reopening of the case We find that the Ld. CIT(A) has given finding on fact that assessee has not written off such NPA and interest thereon as bad debt during the year under consideration this finding on fact is not controverted by the Ld. Counsel for the assessee. Ld. Counsel submitted that this is allowable u/s 37 of the Act. In our view, the contentions of the assessee is misplaced the Section 37 relates to the any expenditure not being expenditure of the nature described in Section 30 to 36 since the interest is part of that would be covered u/s 36(1)(vii) of the Act. Further, the plea of the assessee is that this has been allowed in the earlier years in our view rule of consistency would apply where the assessee has been following the particular accounting policy and the revenue has been accepted the same but the issue of allowability or disallowability of expenses would certainly depend upon the provision of the Act. Therefore, this ground of assessee’s appeal is dismissed. - Appeal of assessee dismissed.
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