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2023 (3) TMI 1052 - HC - Income TaxReopening of assessment u/s 147 - period of limitation - factual error pointed out by the Revenue Audit Party - HELD THAT:- Mere change of opinion on the part of the assessing officer is not a sufficient ground to re-open the assessment. We are in complete agreement with such a conclusion arrived at by the Tribunal. There is no justifiable reason assigned by the AO for not initiating action to re-open the assessment before the period prescribed under the Act. While so, we find no error in the decision of the Tribunal. The audit party noticed that the certificate of recognition granted to the assessee expired on 22.09.1972 itself and therefore, the assessee trust cannot be recognised as a charitable trust during the assessment year in question and consequently the donation made to the trust will not qualify for deduction u/s 80G of the Act. It is in those circumstances, the assessing officer re-opened the assessment. The audit party is entitled to point out a factual error or omission in the assessment. reopening of the assessment in the light of factual errors pointed out by the audit party is permissible under law. In the present case, even though the assessment was reopened on the basis of the error pointed out by the revenue audit, the same was done after the period prescribed u/s 147. Tribunal is right in allowing the appeal filed by the assessee. Accordingly, the questions of law raised in this appeal are answered against the revenue.
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