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2023 (1) TMI 329 - HC - Income TaxReopening of assessment u/s 147 - Reopening beyond a period of four years - deduction granted for Keyman policy and disallowance u/s 14A - HELD THAT:- As it appears from the record that claim of Keyman insurance premium appeared in computation of income and also in audited annual accounts under the head Long term loans and advances and details of Keyman insurance policy along with receipts for payments made during the year under consideration were also furnished before the AO. Disallowance u/s 14A - case of the respondent is that there was an error in computation of the average value of investments, as adopted at the original assessment stage, whereby certain investments yielding exempt income were not considered. From the record, it appears that investments and assets were shown in the balance sheet and specific notice was issued with respect to disallowance under section 14A - assessee vide letter gave complete details and explanation as to why disallowance under section 14A is unwarranted and in fact, the AO made addition u/s 14A of the Act while framing the assessment under section 143(3) of the Act. AO after threadbare examining the various issues including issues as to Keyman insurance premium and disallowance u/s 14A of the Act, took a view not to make any disallowance in respect of Keyman insurance premium while framing assessment under section 143(3) of the Act and made disallowance under section 14A of the Act. There is change of opinion by the AO to reopen the assessment for the AY 2013-2014, more particularly, when the issues raised in the reopening assessment were already considered during the assessment proceedings under section 143(3) - AO cannot have any jurisdiction to issue the notice u/s 148 for reopening the assessment for the year under consideration more particularly, when the assessment is sought to be reopened beyond a period of four years as held by the Supreme Court in case of Commissioner of Income tax v. Kelvinator of India Ltd. [2010 (1) TMI 11 - SUPREME COURT] - Decided in favour of assessee.
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