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2023 (5) TMI 951 - AT - Income TaxReopening of assessment u/s 147 - Disallowance on account of interest on interest free advances given to the sister concern/relatives for non-business purpose - Addition u/s.36(1)(iii) - HELD THAT:- As when the issue as regards the allowability of assessee’s claim for deduction of interest expenditure u/s.36(1)(iii) had been deliberated upon by the A.O while framing the original assessment vide his order passed u/s.143(3) then in absence of any fresh material having been placed on record after culmination of the said assessment the assessee’s case could not have been validly reopened u/s.147 of the Act. As in agreement with the view taken by the CIT(Appeals) that reopening of a concluded assessment that is merely prompted by a change of opinion of the successor A.O as against that taken by his predecessor can by no means be held to be justified. The aforesaid view is fortified by the judgment of Kelvinator of India [2010 (1) TMI 11 - SUPREME COURT] held, that the case of an assessee cannot be reopened on the basis of a mere “change of opinion”. As observed by the CIT(Appeals) and, rightly so, as the amounts in question were advanced by the assessee firm in the normal course of its business, therefore, no part of the same could have been disallowed by triggering the provisions of Section 36(1)(iii) of the Act. Decided against revenue.
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