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2023 (3) TMI 313 - AT - Income TaxReopening of assessment u/s 147 - change of opinion - Reason to believe - HELD THAT:- There was no fresh material available with the AO for harbouring a doubt that income had escaped assessment, the reopening of assessment was purely based on change of opinion. Considering in the case of CIT v. Kelvinator India Ltd.[2010 (1) TMI 11 - SUPREME COURT] as well as in the case of TANMAC India [2017 (1) TMI 122 - MADRAS HIGH COURT] the assessment order passed u/s 143(3) r.w.s. 147 is liable to be quashed. CIT(A) has also, by following various judgements annulled the assessment framed u/s 147 of the Act and thus, we find no reason to interfere with the order passed by the CIT(A). Accordingly, the ground raised by the Revenue is dismissed. TDS u/s 194C - Non deduction of tds - Audit objection - HELD THAT:- We find that the audit objection on a point of law may constitute fresh information for reopening of assessment. However, if the audit objection on factual issue and, where, the audit party has quantified escapement, then, definitely, it does not constitute information for reopening of assessment. In this case, if we go by audit note issued by the audit party, it points out disallowance of 40(a)(ia) of the Act for non-deduction of TDS, in our opinion, the said observations of the audit party is on a factual matrix and no legal position is involved. Therefore, the argument of the ld. DR in light of certain judicial precedents are not tenable.
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