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2021 (9) TMI 200 - HC - Income TaxReopening of assessment u/s 147 - Validity of reasons to believe - non disposing of objections - Change of opinion - HELD THAT:- we find that there is a reference to the First Proviso to Section 147 of the Act, which would not arise in the case of the assessee, as neither in the reasons for reopening, the same has been pointed out nor it was the case of the assessee in their objections. - The observation of the AO is an outcome of non application of mind. In the absence of any allegation that there was any fresh material to come to a conclusion that income escaped assessment, the Assessing Officer cannot now take a stand that the claim made by the assessee under Section 37 of the Act, which was acceded to by the Assessing Officer, was incorrect and the expenditure is in the nature referred to in Section 35D of the Act. If this is the observation and reason for reopening, it would be a clear case of change of opinion. What the Assessing Officer purported to do is to review his earlier decision. As held by the Supreme Court, it is not for the assessee to tell as to how the Assessing Officer has to complete the assessment. The AO, while disposing of the objections vide order dated 26.2.2016, has not touched upon the issue relating to jurisdiction. Submission of respondent that if the Court has to come to such a conclusion, then the matter may be remanded to the Assessing Officer to pass a speaking order on the objections filed by the assessee is not convinced to accept the said contention for more than one reason. - Therefore, we are inclined to quash the proceedings of reopening. - Decided against the Revenue.
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