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2022 (1) TMI 896 - HC - Income TaxValidity of Reopening of assessment u/s 147 - notice beyond the period of four years from the end of the relevant assessment year - reliance on audit observation sheet - set-off of business loss and unabsorbed depreciation pertaining to Times Now business, which was demerged from Times Global Broadcasting Company Limited - HELD THAT:- This Court in Ananta Landmark (P) Limited Vs. Deputy Commissioner of Income-tax [2021 (10) TMI 71 - BOMBAY HIGH COURT] has relied upon Indian and Eastern Newspaper Society Vs. Commissioner of Income Tax [1979 (8) TMI 1 - SUPREME COURT] where the Court held that in every case, the Income Tax Officer must determine for himself what is the effect and consequence of the law mentioned in the audit note and whether in consequence of the law which has come to his notice he can reasonably believe that income had escaped assessment. The basis of his belief must be the law of which he has now become aware. The opinion rendered by the audit party in regard to the law cannot, for the purpose of such belief, add to or colour the significance of such law. Therefore, the true evaluation of the law in its bearing on the assessment must be made directly and solely by the Income Tax Officer. It is not at all a case that petitioner has not disclosed anything in his response. Petitioner had given the full particulars. The stand taken by petitioner was also accepted by respondents on merits. The Assessing Officer even disagreed with the audit objections but on second thought, to the objections from the auditors he has re-opened the assessment. In our view, re-opening of the assessment without any basis and merely change of opinion is not permissible while exercising the powers under Section 147 read with Section 148 of the Act. We have no option but to allow this petition
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