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2018 (3) TMI 537 - HC - Income TaxValidity of reopening of assessment - eligible reasons to believe - proof of change of opinion - Held that:- The basis of the reopening notice is that the amount of ₹ 97.74 lakhs had remained to be disallowed in the regular proceedings leading to assessment order dated 25th February, 2005 as the expenses were not routed through profit and loss account. This basis is incorrect as the assessment order dated 25th February, 2005 under Section 143(3) of the Act, in fact, at paragraph no.7 examines the entire claim of ₹ 339.96 crores, which includes ₹ 97.74 crores. In fact, the impugned order records the fact that the order dated 25th February, 2005 under Section 143(3) of the Act records that ₹ 339.96 crores is not been routed through the profit and loss account and yet disallowed only a part of the claim to the extent of ₹ 242 crores. Thus, it is self-evident from the order of the assessment dated 25th February, 2005 that the Assessing Officer had applied his mind over the issue which forms the basis of the reopening notice dated 26th March, 2007. It is settled position in law that the the reopening notice based on mere change of opinion is not sustainable as held by the Apex Court in Commissioner of Income Tax Vs. Kelvinator India [2010 (1) TMI 11 - SUPREME COURT OF INDIA]. No substantial question of law
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