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2014 (1) TMI 930 - ITAT HYDERABADValidity of reopening of assessment u/s 147 of the Act – wrong claim of deduction made u/s 80HHC of the Act – Royalty derived from export business or not – Held that:- All the facts relating to the mining franchise fees and deduction claimed u/s 80HHC of the Act were before the AO at the time of original assessment proceeding and the AO after applying his mind to the facts and materials on record has taken conscious decision while calculating deduction u/s 80HHC – thus, it cannot be said that there is any failure on the part of the assessee to disclose truly and fully all the material facts necessary for its assessment - Even otherwise also there is nothing on record to suggest that escapement of income, if at all, there is any, was on account of failure on the part of the assessee to disclose fully and truly all material facts. Reopening of assessment on the basis of the self-same material, which were considered by the AO while completing original assessment would amount to change of opinion and the assessment order passed has to be held as invalid in law – Thus initiation of proceeding u/s 147 of the Act and the assessment order passed in cannot be considered to be valid firstly for the reason that there being no failure on the part of the assessee to disclose fully and truly all material facts, no reopening could have been made after expiry of 4 years from the end of the assessment year and secondly, there being no fresh and tangible material before the AO for initiating proceeding u/s 147 of the Act, initiation of proceeding on a mere change of opinion is invalid and bad in law – Decided against Revenue.
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