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2021 (3) TMI 954 - HC - Income TaxReopening of assessment u/s 147 - reopening done beyond the period of four years - whether there is any allegation against the respondent-assessee having failed to fully and truly disclose all the details before the Assessing Officer when the assessment was initially completed under Section 143(3) of the Act on 31.12.2010? - HELD THAT:- Admittedly, there is no allegation against the assessee and the Tribunal was right in holding that there was no negligence on the part of the assessee in furnishing necessary materials in completing the assessment. If such is the admitted factual position, the reason for reopening, stating that expenditure in relation to income not includable in total income under Section 14A of the Act should be calculated as per Clause (ii) of Rule 8D(2), would clearly amount to change of opinion. The stand taken by the Revenue before us by placing reliance on the decision in the case of P.V.S. Beedies P. Ltd.[1997 (10) TMI 5 - SUPREME COURT] is not substantiating their case on account of the factual position in the case of P.V.S. Beedies P. Ltd. In the said case, the audit department noted that the trust under the name of P.V.S. Memorial Charitable Trust had been initially granted recognition, which had expired on 22.09.1972 and therefore for the relevant years under consideration in the said case, namely AY 1974-75 and 1975-76, the trust was not a recognized charitable trust. Therefore, the audit department having pointed out the same, the assessment was reopened. The factual position in P.V.S. Beedies P. Ltd is quite distinct and different from the case before us. Therefore, the said decision would not render assistance to the case of the Revenue.
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