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2021 (7) TMI 612 - AT - Income TaxReopening of assessment u/s 147 - validity of reasons to believe - addition on account of suppression of rental income, disallowance of expenditure and undisclosed income - HELD THAT:- The said details were available while completing the assessment u/s. 143(3). It is imperative on the part of the Assessing officer to show that the conditions specified in the first proviso to sec. 147 are complied with before initiating the reassessment proceedings. AO has failed to show that there was failure on the part of the assessee to disclose fully and truly all material facts. Hence, the reassessment proceeding under section 147 has not been validly initiated because the same has been initiated merely on a change of opinion without any fresh material coming into the possession of the AO - The reason must have live link with the formation of the belief. But in the present case, the materials facts which emerged for reopening the assessment u/s. 147 of the Act, that were available during the original assessment. The view of the various Courts is that even after amendment of section 147, mere change of opinion does not confer jurisdiction on the Assessing officer to initiate proceedings for reassessment merely by resorting to Explanation 1 on the basis of change of opinion. reopening of the assessment is bad in law and hence, liable to be quashed. - Decided in favour of assessee.
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