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2017 (12) TMI 740 - AT - Income TaxReopening of assessment u/s 147 - Addition u/s 69C - Held that:- Details of purchases as well as sundry creditors were provided to the assessing officer at the time of assessment proceedings u/s.143(3) of the act. AO has mentioned in the body of the assessment order itself that the assessee has filed the details of purchases and sales and confirmations and the same have been gone through by him. For the purpose of reopening, there was no fresh material available with the assessing officer and from the very same details, opinion was changed about the alleged cash payments to the purchasers. In this case, the issue relates to cash purchases made from the farmers. Provisions of rule 6DD(e)(i) of the IT Rules, 1962 are squarely applicable for the cash purchases of agricultural produce. One cannot deny the possibility that during the assessment proceedings u/s. 143(3) of the act, assessing officer took a view that even though payments for purchases are made in cash, they are covered by rule 6DD(e)(i) of IT Rules, therefore, no disallowance is called for u/s. 40A(3) of IT Act. Subsequent to the completion of assessment proceedings u/s. 143(3), ld. assessing officer again on going through the very same documents formed an opinion that such cash payments are disallowable u/s. 40A(3). This act of the ld. assessing officer squarely falls under the category of “change of opinion” and as observed by Hon’ble Apex Court, assessment u/s. 143(3) cannot be reopened merely for the “change of opinion”. Respectfully following the judgment of Hon’ble Apex Court in the case of CIT vs. Kelvinator of India (2010 (1) TMI 11 - SUPREME COURT OF INDIA and in the given facts and circumstances of the case, we quash the re-assessment proceedings u/s. 147 r.w.s. 148 of the act and restore the order dated 16-11-2009 passed u/s. 143(3) of the act. In the result, this ground of the assessee challenging the re-assessment proceedings is allowed. - Decided in favour of assessee.
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