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2021 (6) TMI 556 - HC - Income TaxReopening of assessment u/s 147 - whether there was true and full disclosure by the petitioner at the time of assessment? - whether the petitioner is entitled to state that the impugned proceedings were on account of change of opinion? - HELD THAT:- Before the assessment was completed, the petitioner’s auditor has clearly stated that the petitioner was trader of rights in films and that the petitioner has not claimed any appreciation and consequently there is no schedule for the same. In the said communication, the auditor has also called upon the respondent to inform as to which of the transactions and which of the agreements were required. It is thereafter the assessment was completed under section 143 (3) on 19.12.2011. Before the assessment order was passed, a personal hearing was also held on 04.08.2011. Though the assessment order has been passed by the predecessor of the respondent, it does not reveal any proper reasonings. Nevertheless, it cannot be said that the petitioner was guilty of failure to disclose truly and fully all material facts necessary for completing assessment for the assessment year 2009-2010. Therefore, the impugned exercise of the respondent invoking section 148 of the Income Tax Act, 1961 for the purpose of first proviso to section 147 has to be held on account of change of opinion by the respondent. Thus the impugned communication overruling the objection of the petitioner against reopening of the assessment is liable to be quashed. Accordingly, it is quashed. This Writ petition stands allowed.
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