2025 (6) TMI 1749 - AT - Income Tax

Reopening of assessment - Unexplained cash credit u/s.68 - HELD THAT - We find that on similar issue in the case of Nitin Hire Purchase Pvt. Ltd. 2024 (10) TMI 1668 - ITAT KOLKATA has held that reopening was made on the basis of some material which was available before the AO at the time of proceedings u/s.147 is a change of opinion on the part of the AO. Now the department has challenged in the grounds of appeal the addition made in the assessment order passed u/s.147/143(3) - CIT(A) in the appellate proceedings has already allowed the appeal of the assessee by observing and holding that there is no material on record before the AO while issuing notice u/s.148 of the Act and is only a change of opinion on the part of the AO and accordingly the reopening was quashed on the ground of change of opinion. Revenue appeal dismissed.

Summary

The Appellate Tribunal (ITAT Kolkata) dismissed the revenue's appeal against the deletion of additions totaling Rs. 1,92,00,000/- made under section 68 of the Income Tax Act for AY 2013-14. The additions comprised Rs. 55,00,000/- and Rs. 1,37,00,000/- on account of unexplained cash credits.Key legal reasoning includes:- The reopening of assessment under section 147 was challenged as a "change of opinion" by the Assessing Officer (AO), lacking new material justifying reopening.- The ld. CIT(A) had quashed the reopening notice on this ground, holding "there is no material on record before the AO while issuing notice u/s.148" and that reopening was invalid.- The revenue did not challenge this legal finding before the ITAT but instead contested the merits of the additions.- The Tribunal held that since the legal issue of reopening validity was not challenged, the ld. CIT(A)'s decision on that point became final.- Consequently, the revenue's appeal was dismissed as infructuous.Thus, the Tribunal affirmed that reopening assessments without fresh material constitutes impermissible change of opinion, rendering the additions unsustainable. The appeal was dismissed accordingly.