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2023 (7) TMI 1213 - HC - Income TaxReopening of assessment - assessee firm had not deducted TDS as required u/s 194(C) on the entire hire charges - reliance on audit objection - ITAT, dismissed the appeal of the revenue holding that reopening of the assessment was purely based on a change of opinion - HELD THAT:- Assessee in this case is engaged in the transport contract business and claimed expenses in the returns filed. AO sought an explanation from the assessee regarding the substantial expenses claimed under the category "other expenses" in the Profit and Loss account which was responded by assessee submitting letter stating that the expenses were related to transport contracts for transporting gypsum and cement to the companies. Upon careful examination of the documents and details provided by the assessee along with the IT statement, the AO completed the assessment u/s 143(3). Assessment order explicitly stated that the AO had examined all the documents and details submitted by the assessee and accepted the income returned. Thus, it is evident from the assessment order that the AO had already scrutinized the expenses claimed by the assessee during the original assessment. While so, reopening the assessment solely on the basis of an audit objection amounts to a clear case of change of opinion, as observed by the Tribunal. Reopening the assessment by AO without any substantive basis or new material would only tantamount to a change of opinion and it is not at all a valid ground for reopening. Therefore, the Tribunal has rightly held that reopening the assessment u/s 147 is indeed a change of opinion, which is not permissible under law, in the light of the judgment of CIT V. Kelvinator India Ltd. [2010 (1) TMI 11 - SUPREME COURT] - Decided in favour of assessee.
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