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2020 (6) TMI 400 - AT - Income TaxReopening of assessment u/s 148 - interest paid on the service tax by considering the revised return of income - HELD THAT:- After 1st April, 1989, the AO has power to re-open, provided there is "tangible material" to come to the conclusion that there is an escapement of income from assessment. Reasons must have a live link with the formation of the belief. In the present case, the assessee has claimed interest on service tax paid as allowable deduction relates to the present A.Y. 2011-13, for that purpose he filed revised return, the same is examined by the AO and completed the assessment u/sec. 143(3), therefore the AO has already firmed opinion that the deduction claimed by the assessee is allowable deduction and accordingly allowed. Subsequently, on the basis of very same revised return and on the very same claim the Assessing Officer came to a conclusion that the expenses claimed by the assessee relates to the earlier year i.e. A.Y. 2011-12 and not relating to the assessment year under consideration, in our opinion is merely a change of opinion and is not permissible in the case of M/s.Kelvinator of India Ltd. [2010 (1) TMI 11 - SUPREME COURT]. We, are of the opinion that reopening of assessment is not valid, therefore notice issued by the Assessing Officer has to be quashed. No infirmity in the order passed by the ld. CIT(A). So far as merits of the case is concerned, CIT(A) gave a finding by following the judgment of Andhra Sugars Ltd. [2015 (2) TMI 810 - ANDHRA PRADESH HIGH COURT] that whether service tax paid has to be allowed in the year of payment or irrespective of the year allowablility incurred. CIT(A) by following the decision of the Hon'ble Jurisdictional High Court in the case of Andhra Sugars Ltd. (supra) deleted the addition made by the Assessing Officer. We find no reason to interfere with the order passed by the ld. CIT(A). Thus, this appeal filed by the Revenue is dismissed.
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