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2022 (11) TMI 253 - HC - Income TaxReopening of assessment u/s 147 - notice is challenged is that it has been initiated after the expiry of four years from the end of the relevant AY on a mere change of opinion without any tangible new material - vehicle expenses and hire charges without deducting TDS on the hiring charges paid to the service provider - contention of the Assessee that the matter regarding non-deduction of TDS while paying to the service provider was already the subject matter of the original assessment proceedings before the AO during the scrutiny assessment - HELD THAT:- As the original assessment was on the basis of a complete and careful examination of the books of accounts produced by the Assessee. There was application of mind by the ITO to the materials produced by the Assessee. As regards the reasons for reopening the assessment, it is stated to be based simply on “information available on record.” There is no indication that there was any failure by the Assessee to make a full and true disclosure of all the material particulars. The notice records mechanically that the ITO had reasons to believe that income chargeable to tax has escaped assessment. In other words, there is no reference to any new and tangible material forming the basis for the above belief about escapement of income from tax. In short, the same material already available on record was re-examined by the ITO to come to the conclusion that there was an escapement of income. Notwithstanding the explanation to Section 147 of the Act that production of books of accounts by itself will not amount to a full disclosure, the reasons communicated should still have to indicate that there was a failure to make a full disclosure although the accounts were produced before the AO. In the instant case, there is no such statement anywhere on the record, which could have formed the basis for the belief of the ITO that income had escaped assessment. In the present case, it appears that the reopening of the assessment was based on the same material already available before the AO and without any noting, at the time of reopening of the assessment that there was a failure on the part of the assessee to make a full and true disclosure of all material particulars. On the same material already available, the ITO formed reason to believe that income had escaped assessment. This appears to be a textbook example of a reopening of assessment based on a mere change of opinion. - Decided in favour of assessee.
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