2022 (11) TMI 1134 - AT - Income Tax
Reopening of assessment u/s 147 - reason to believe - change of opinion - Deduction of interest expenditure u/s. 57 - Deduction as claimed to have been borne exclusively for earning of interest income on the investment with a partnership firm in which the assessee as a partner was in receipt of interest income @12% - HELD THAT:- AO while framing the original assessment had found the assessee’s claim for deduction of interest expenditure u/s 57 in order, and had not drawn any adverse inferences as regards the same - On the basis of the aforesaid facts, of the considered view that reopening of the concluded assessment of the assessee which was earlier framed by the A.O u/s.143(3) on the basis of a change of opinion can by no means be held to be justified. The aforesaid view is fortified by the judgment in the case of CIT Vs. Kelvinator of India [2002 (4) TMI 37 - DELHI HIGH COURT]
We concur with the claim of the AR that the A.O had exceeded his jurisdiction and reopened the concluded assessment in the case of the assessee merely on the basis of “change of opinion” u/s.147 of the Act, which is not permissible in the eyes of law.
A.O had exceeded his jurisdiction and reopened the concluded assessment in the case of the assessee merely on the basis of “change of opinion” u/s.147 which is not permissible in the eyes of law. Thus, on the basis of my aforesaid observations quash the reassessment framed by the A.O vide order passed u/s.144 r.w.s. 147 for want of valid assumption of jurisdiction on his part. Appeal of the assessee is allowed.