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2019 (7) TMI 1434 - AT - Income TaxReopening of assessment u/s 147 - validity of reasons to believe - refundable security deposit - HELD THAT:- Assessing Officer has not brought on record any tangible material or information to establish a case of escapement of income. The whole basis of the reopening in the instant case is based on addition made in assessment year 2013-14 which, in our opinion, cannot be termed as tangible material for the purpose of the provisions of section 147 of the IT Act, especially when the Assessing Officer in the assessment year 2012-13 has accepted this very issue after due examination and no addition has been made. In our opinion, for the purpose of section 148, the requirement of tangible material is mandatory irrespective of mode of original assessment as held by the Hon'ble Delhi High Court in the case of Tupperware India P. Ltd. [2015 (8) TMI 517 - DELHI HIGH COURT] Further, as held by the Hon'ble Supreme Court in the case of Mahendra Mills Ltd. [1975 (3) TMI 1 - SUPREME COURT] the term ‘record’ includes the entire record of subsequent and preceding years. Since the issue of refundable security deposit was examined in assessment year 2012-13 and the opinion so formed will be equally relevant for assessment year 2009-10 to 2011-12 as well and as such the reassessment proceedings based on a different view adopted in assessment year 2013-14, in our opinion, would be based on change of opinion and reappraisal of facts already on record. Therefore, we agree with the contention of the ld. counsel for the assessee that the reassessment proceedings so initiated are void on the ground that the reasons are not based on any tangible material for recording of such reasons. The various decisions relied on by the ld. DR are distinguishable and not applicable to the facts of the present case. In view of the above discussion, we hold that the reassessment proceedings initiated by the Assessing Officer are not in accordance with the law. - Decided in favour of assessee.
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