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2019 (6) TMI 998 - HC - Income TaxReopening of assessment - difference between the amount of salary payment recorded in the salary register impounded and the amount of salary debited in the P & L account - objections raised by the petitioners against notice are rejected - change of opinion - HELD THAT:- A bare perusal of the reasons recorded and the justification, explanation and reconciliation provided by the petitioner in the objections would clearly lead to a conclusion that there is no escapement of income, irrespective of the aspect that claim of salary was scrutinised or not scrutinised during the course of original assessment. It appears from the order dated 21.8.2018 disposing the objections raised by the petitioner that the respondent has adopted a pedantic robotic approach ignoring the objections raised by the assessee petitioner in toto with only one object of rejecting the objections. The respondent is duty bound to consider and apply his mind to the objections raised. However, on perusal of the order dated 21.8.2018 whereby the objections raised by the petitioners are rejected, it transpires that reasons given for rejecting the objections are nothing but an eyewash as justification, explanation and reconciliation provided by the petitioner is not even referred to by the respondent. Such an approach of the respondent is required to be deprecated. Reasons recorded by the assessing officer are based on incorrect facts in addition to the fact that the AO during the course of original assessment has scrutinised the details of salary expenditure by issuing notices u/s 142(1) and by calling for information and hence, it is evident that the assessment is sought to be reopened on a mere change of opinion, which is not permissible in law. AO has considered the claim of the petitioner with respect to the salary expenditure and, therefore, when the petitioner filed the objections to the impugned notice which is based only upon the salary register of Navsari unit impounded during the course of survey conducted in the year 2016, the respondent ought to have dropped the reopening proceedings. - Decided in favour of assessee
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