Latest - TMI e-Newsletter
New User/ Regiser
2022 (8) TMI 269 - Income Tax
Reopening of assessment u/s 147 - correctness of exercise of power by the assessing officer under Section 147/148 of the Act and reopening the assessment which was completed - Tribunal justification in law in quashing the order passed u/s 147 - HELD THAT:- Three issues which were raised by the assessing officer and one such issue pertains to the basis of realizable market value for claim of deduction under Section 80IA of the Act. In response to the said notices the assessee had submitted a reply on 13th March, 2003 and on 21st March, 2003. In the reply dated 21st March, 2003 the assessee has extracted the question posed to the assessee by the AO regarding the claim of deduction under Section 80IA - We find that there were six questions which were asked to the assessee and the assessee has submitted a detailed reply.
If that be the position whether the assessment could have been reopened. In our considered view, the Tribunal rightly granted relief to the assessee after noting the factual position, by pointing out that relevant material was placed on record by the assessee when they made the claim for deduction u/s 80IA of the Act and query was raised and the case was discussed and the assessee had placed material before the assessing officer and it is only thereafter the realisable market value of the power as adopted by the assessee was initially accepted by the assessing officer. Therefore, the Tribunal, in our considered view, rightly stated that the reassessment proceedings were clearly a case of change of opinion.
As in INDIAN AND EASTERN NEWSPAPER SOCIETY [1979 (8) TMI 1 - SUPREME COURT] and the legal position was explained by stating that the proposition in Kalyanji Mavji & Co. to the effect that a case where income had escaped assessment due to oversight, inadvertence or mistake of the ITO must fall within S.34(1)(b) of the 1922 Act, is stated too widely and travels further than the statute warrants in so far as it can be said to lay down that if, on reappraising the material considered by him during the original assessment, the ITO discovers that he has committed an error in consequence of which income has escaped assessment, it is open to him to reopen the assessment. An error discovered on a reconsideration of the same material does not give him that power.
Decided against revenue,