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2019 (2) TMI 659 - HC - Income TaxReopening of assessment - proceedings under section 154 were also initiated against the petitioner on the same set of facts - “reason to believe” - Held that:- The Hon'ble Supreme Court in the case of State of Uttar Pradesh and others vs. Aryaverth Chawal Udyog and others [2014 (11) TMI 1095 - SUPREME COURT] has held that mere change of opinion while perusing the same material cannot be a “reason to believe” that a case of escaped assessment exists requiring assessment proceedings to be reopened. Even if, at the time of passing of the original assessment order, there is a mistake or nonapplication of mind, it would not justify the respondent – Department to re-initiate the proceedings of reassessment. In the case, in hand, the Assessing Authority had applied its mind and passed the original assessment order and there is no fresh material on record permitting the respondent – Department to initiate re-assessment proceedings. The impugned notice dated 29.03.2014 amounts to change of opinion on the same set of facts, which were available at the time of passing the original assessment order. This Court is of the opinion that the initiation of the re-assessment proceedings is bad in law and is liable to be set aside. - Decided in favour of assessee
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