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2023 (11) TMI 237 - HC - Income TaxReopening of assessment u/s 147 - reason to believe - notice issued after four years - Deductions u/s 36(1)(vii), 36(1)(viia) and 36(1)(viii) of bad debts was allowed in excess - onus to prove - HELD THAT:- As considered the reasons and the entire basis for forming a reason to believe that there has been escapement of income is the effect that the assessing officer gave while giving effect to CIT(A)’s order u/s 250 of the Act. These do not indicate that there was no failure on the part of Petitioner to truly and fully disclose material facts. During the assessment proceedings, AO had issued notices u/s 142(1) and also issued questionnaires from time to time with respect to Petitioner’s claim u/s 36(1)(vii), Section 36(1)(viia) and Section 36(1)(viii) and Petitioner has answered all those queries. In the assessment order, Petitioner’s claim u/s 36(1)(vii) r.w.s. 36(1) (viia) and Section 36(1)(viii) has been discussed in detail and certain amount of bad debts had been disallowed. Petitioner had carried that in appeal to CIT(A) and an order giving effect to the order passed by the CIT(A) came to be passed. Therefore, the reasons as recorded for reopening indicate only change of opinion which again is not permissible in law. Change of opinion does not constitute justification and/or reasons to believe that income chargable to tax has escaped assessment. Decided in favour of assessee.
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