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2022 (3) TMI 1186 - AT - Income TaxReopening of assessment u/s 147 - applicability of Section 2(22)(e) - change of opinion - HELD THAT:- AR brought to our notice that in the reasons for reopening it is mentioned that J.M.Cotton Ginning & Pressing Co. Pvt. Ltd., is 100% subsidiary of the assessee and Krishin Dhan Cattle Feeds Pvt. Ltd. has 81.45% shareholding of the assessee, these facts the AO has mentioned from the assessment records of the original assessment. AR further pointed that in the Audit Report it is clearly mentioned that J.M.Cotton Ginning & Pressing Co. Pvt. Ltd., is subsidiary and Krishin Dhan Cattle Feeds Pvt. Ltd., is a related party. CIT(DR) has not rebutted the claim of assessee. Also, in the reasons, the AO has not claimed that it has received the information regarding shareholding of the assessee company in the lender companies after the original assessment was completed. Therefore, the prima facie, we have to accept the submission of the ld.AR of the assessee that shareholding of the appellant company in the lender company were submitted during the original assessment proceedings. Thus, during the original assessment proceedings, the AO was having knowledge that assessee company has taken loans from J.M.Cotton Ginning & Pressing Co. Pvt. Ltd., and Krishi Dhan Cattle Feeds Pvt. Ltd. AO was also having knowledge about shareholding of the assessee company in these lender companies. During the original assessment proceedings, the appellant had submitted the Balance Sheets of the lenders companies. AO had specifically asked the questions about the unsecured loans. Thus, after considering the submission AO arrived at the decision. Therefore, in this scenario it will be inappropriate to say that the AO has not considered the applicability of Section 2(22)(e) As observed that all the facts, which are required to decide applicability of section 2(22)(e)were in the knowledge of the AO. Therefore, initiating reopening proceedings on the same facts, is nothing but change of opinion. Thus, we are of the considered opinion that in this case the reopening proceeding was merely based on the change of opinion. Therefore, the notice u/s 148 dated 29/10/2012 is without jurisdiction and we set aside the same. - Decided in favour of assessee.
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