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2018 (7) TMI 362 - AT - Income TaxReopening of assessment - Addition to prior period income - Held that:- AO has mentioned that this information was available in the Form 3CD report which had been filed for the assessee. In reply to a query raised by the AO, the assessee, in its submission dated 06.10.2008 in paragraph 6, had submitted before the AO that prior period expenses had not been claimed by the assessee company in its return of income and as the profit / loss for the year had been considered only before the claim of previous year expenses, no disallowance was needed in the assessment proceedings. Sales Tax Deferment also disclosed in the computation of income of the assessee which was filed along with return of income. As much evident that all this information was before the AO at the time of the original assessment proceedings. There was no fresh tangible material which had come in possession of the AO with regard to the prior period income so as to warrant initiation of reassessment proceedings in the case of the assessee. We hold that the reassessment was based on a mere change of opinion by the AO which, under law, he was not entitled to do. Admittedly, the reopening is within 4 years, however, the issue is squarely covered in favour of the assessee by the judgment of the Hon’ble Apex Court in the case of CIT vs. Kelvinator of India Ltd. (2010 (1) TMI 11 - SUPREME COURT OF INDIA). Reopening was bad in law in view of no tangible material having come in possession of the AO subsequent to the original assessment proceedings and relating to the prior period income. Thus, it is a case of mere change of opinion by the AO which amounts to review of his earlier order and the same cannot be upheld. Therefore, the order of the CIT (A) is set aside and the reassessment proceedings u/s 147/148 of the Act are quashed as being void ab initio - Decided in favour of assessee.
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