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2021 (12) TMI 1139 - BOMBAY HIGH COURTReopening of assessment u/s 147 - eligibility of reason to believe - change of opinion - HELD THAT:- Petitioner is correct in its submissions that it is nothing but change of opinion. It is pertinent to note that there was scrutiny assessment under Section 143(3) of the Act. In the reasons recorded indicate the grounds on which re-assessment is sought to be initiated. Paragraph 3.1 starts with the words, “During the year, in the submissions furnished by the assessee, it is found that the assessee company had shown 7 outlets but the company showed sales only from 2 outlets, i.e., one at Bandra and other at Colaba, debited expenses on account of 7 outlets. ” The new Assessing Officer has problem with the earlier Assessing Officer having allowed expenditure relating to all the 7 outlets when sales was shown only from 2 outlets. Paragraph 3.1 ends with the words, “…. therefore, the said expenditure cannot be allowable as business expenditure during the relevant AY 20120-13 being expenditure not related to the period under consideration”. This is certainly change of opinion. Paragraph 3.2 also relates to payment of rent for 5 outlets and repairs and renovation for all the outlets and that paragraph ends as, “….. The Assessing Officer has not examined these issues …..”. Therefore, it is nothing but change of opinion based on which assessment cannot be re-opened. - Decided in favour of assessee.
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