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2021 (8) TMI 829 - HC - Income TaxReopening of assessment u/s 147 - reason to believe - change of opinion - computation of net interest received from government securities - HELD THAT:- The annexure clearly indicated the interest received from investment in government securities and premium written off during financial year 2004-05 - The aforesaid return was processed under Section 143(1) of the Act on 31.03.2006. The return thereafter was selected for scrutiny and the Assessing Officer passed an original order of assessment dated 27.07.2007. Thus, the details were placed before the Assessing Officer, at the time of original assessment and therefore, it is not possible to infer that the AO had not at all applied his mind. The Supreme Court in TECHSPANINDIAS PVT LTD [2018 (4) TMI 1376 - SUPREME COURT] has held that the use of the words ‘reason to believe’ in Section 147 has to be interpreted schematically as the liberal interpretation of the word would have the consequence of conferring arbitrary powers on the assessing officer who may even initiate such re-assessment proceedings merely on his change of opinion on the basis of same facts and circumstances which has already been considered by him during the original assessment proceedings. As evident that the Assessing Officer, on perusal of the record available with him, came to a different conclusion and therefore, he cannot be permitted to change his opinion. It is settled in law that the concept of 'change of opinion' is in-built test to check the abuse of power by the Assessing Officer. Thus, the initiation of the re-assessment proceedings on account of 'change of opinion' is not permissible in law as the Assessing Officer had examined all the relevant material furnished by the assessee and had accepted the claim of the assessee. The Tribunal has therefore, rightly held that the re-opening of the assessment is based on mere change of opinion by the Assessing Officer. - Decided against revenue.
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