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2019 (9) TMI 1085 - HC - Income TaxReopening of assessment u/s 147 - validity of reasons to believe - change of opinion - payment of Technical Know-How Fee - HELD THAT:- Payment of Technical Know-How Fee is concerned, it is clear from the records that the said issue was considered not only by the Assessing Authority but, by the Transfer Pricing Officer also alongwith other expenditure incurred by the Assessee and it was found that it falls within the domain of international transactions as found by the Transfer Pricing Officer and the T.P. Adjustment was arrived by the Transfer Pricing Officer which was included by the Assessing Authority while passing the Assessment Order under Section 143(3) of the Act. Reassessment proceedings undertaken by the Assessing Authority to disallow the said expenditure fully by holding it to be only adding as intangible asset falling falling within the domain of Section 32(1)(ii) of the Act and allowing only 25% depreciation thereon is nothing but a mere change of opinion by the Assessing Authority. Reassessment under the provisions of Sections 147 and 148 is not permissible on a mere change of opinion. The Assessing Authority, in order to invoke the reassessment proceedings under Section 147/148, has to record "reasons to believe" about escapement of income in the hands of the Assessee. The parameters of powers under Section 147/148 have been discussed by the Apex Court and various High Courts in a large number of decisions and the latest in the series being in the case of CIT v. Kelvinator of India Ltd. (2010 (1) TMI 11 - SUPREME COURT) which has been relied upon by the learned Tribunal to quash the reassessment in the present case - reassessment in the circumstances of the case was done merely based on a change of opinion at a subsequent stage and it was not permissible and set aside the same - Decided in favour of assessee.
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