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2022 (1) TMI 378 - HC - Income TaxValidity of Reopening of assessment u/s 147 - eligibility of reasons to believe - change of opinion - Disallowance u/s 14A r.w.r. 8D - HELD THAT:- Re-opening of assessment is based on the very same material which has been considered before the original Assessing Order was passed, with a view to take another view - petitioner by its letter dated 05/01/2015, had informed the Assessing Officer that the average value of equity investment was ₹ 239.29 crores against the average net worth of the Company of ₹ 795 crores. AO who passed the original Assessment Order, had all primary facts necessary for assessment and he is supposed to have considered all these points when he passed the Assessment Order. Also on change of opinion, assessment cannot be re-opened and in any event, even if we, for a moment, agree with the contents of the reason that the average value of investment was adopted at ₹ 21.79 crores as against ₹ 239.29 crores, still there is a bar under section 147 of the Act as then prevailing to re-open assessment after a period of 4 years where the assessment order has been passed under sub-section 3 of section 143 unless any income chargeable to tax, has escaped assessment by reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment. As in this case, it is not even prima facie the case of the Assessing Officer that there was failure on part of petitioner to fully and truly disclose all material facts, this Court has to interfere by exercising its jurisdiction under Article 226 of the Constitution of India. - Decided in favour of assessee.
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