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2020 (10) TMI 608 - AT - Income TaxReopening of assessment u/s 147 - TDS u/s 194C - Disallowance u/s 40 (a)(ia) on labour charges - Notice beyond 4 years - HELD THAT:- In the case of Kelvinator of India Ltd. [2010 (1) TMI 11 - SUPREME COURT] held that after substitution of section 147 by the Direct Tax Laws (Amendment) Act, 1987, concept of ‘change of opinion’ must be treated as an in-built test to check abuse of power by Assessing Officer and therefore, after 01.04.1989, AO has power to reopen, provided there is ‘tangible material’ to come to conclusion that there is escapement of income from assessment ; reasons must have a live link with formation of belief. In Foramer France [2003 (1) TMI 101 - SC ORDER] observing that the law prevailing on date of issue of impugned notice would apply to instant case, and since new section 147 had come into force w.e.f. 01.04.1989, provisions of that section were applicable, held that “since admittedly there was no failure on the part of the petitioner to make return or to disclose fully and truly all material facts necessary for assessment, proviso to section, which bars issue of notice u/s 148 after expiry of 4 years from end of relevant assessment year, squarely applied to facts of instant case and therefore, impugned notice was barred by limitation. In the instant case, the AO has issued the notice u/s 148 beyond 4 years from the relevant assessment year. We are of the considered view that the AO has reopened the assessment on the basis of a mere change of opinion and therefore, the same cannot be sustained. Therefore, we uphold the order of the Ld. CIT(A) - Appeal filed by the Revenue is dismissed.
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