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2018 (3) TMI 800 - HC - Income TaxReopening of assessment - addition u/s 40(a)(ia) - change of opinion - Held that:- Assessing Officer had issued notice to the assessee as to why these payments should not be disallowed under Section 40(a)(ia) of the Act. The Assessing Officer has not been able to refer to any evidence or material on record to suggest as to what prompted him to form the opinion that there existed violation of the provisions of Section 40(a)(ia) of the Act. In the absence of any material, taking recourse to Section 147 of the Act was unwarranted. The Tribunal while accepting the appeal of the assessee concluded that the conditions required for invoking Section 147 were conspicuously absent. The revenue did not claim to have come in possession of any material to form the basis for the belief that income escaped assessment. It was, thus, held that the case seemed to involve a matter of change of opinion which was not permissible under law. Thus, invoking of jurisdiction under Section 147 of the Act by the Assessing Officer was held to be impermissible and could not be sustained. - Decided in favour of assessee.
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