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2022 (3) TMI 769 - AT - Income TaxReopening of assessment u/s 147 - income in respect of certain items has escaped assessment - eligibility of reasons to believe - HELD THAT:- Where the AO during scrutiny assessment, notices a claim of exemption made by assessee and having entertained prima facie doubts raises queries, asks assessee to satisfy him with respect to such a claim and thereafter does not make any addition in final order of assessment, he can be stated to have formed an opinion irrespective of as to whether or not in final order, he gives his reasons for not making addition reopening of such assessment be said to be based on change of opinion. We do not find any valid reason for reopening of assessment particularly when the original assessment was finalized on the basis of evidences produced by the assessee on the same claim made by him as per the dictate of the Revenue. Respectfully relying upon the ratio laid down in GUJARAT POWER CORPORATION LTD VERSUS ASSISTANT COMMISSIONER OF INCOME TAX [2012 (9) TMI 69 - GUJARAT HIGH COURT] the same is found to be based on mere change of opinion and, thus, bad in law and liable to be quashed. With the above reasons we, therefore, quash the entire proceeding which is found to be devoid of any merit. Hence, assessee's appeal is allowed.
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