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2018 (2) TMI 1376 - HC - Income TaxReopening of assessment - allowability of interest income u/s 80IA - Held that:- The record would show that the crucial requirement arising out of the proviso to Section 147 is not satisfied. AO has, in fact, in the reasons recorded itself proceeded on the basis of “on verification of record.” Thus, clearly the Assessing Officer proceeded on the basis of disclosures forming part of the original assessment. During the original assessment, AO had called upon the assessee to clarify on the interest income of ₹ 2 Crores which include the assessee's claim of ₹ 57.01 lacs as business income and therefore, eligible for deduction under Section 80IA [4]. There was no failure on the part of the assessee to disclose fully and truly all relevant facts. AO had rejected entire claim of deduction under Section 80IA [4]. He, therefore, had no occasion to thereafter comment on a part of such claim relatable to the assessee's interest income. Had the Assessing Officer accepted in principle the assessee's claim of deduction under Section 80IA [4] and thereafter, after scrutiny not made any disallowance for interest income forming part of such larger claim, the principle of change of opinion would apply. Once the Assessing Officer rejected the claim of deduction under Section 80IA [4] in its entirety, there was thereafter no occasion and any need for him to dissect such claim for rejection on some additional ground. AO thereafter cannot re-visit such a claim and seek to disallow part thereof. This would be contrary to the principle of merger statutorily provided and judicially recognized. Even after the Commissioner [Appeals] allow such a claim and the Revenue was of the opinion that he has not processed it and committed an error, it was always open for the Revenue to carry the matter in appeal. At any rate, reopening of the assessment would simply not be permissible. Reassessment carries an entirely different connotation. Once an assessment is reopened, the same gives wider jurisdiction to the AO to examine the claims which had been formed part of the reasons recorded, but which were not originally concluded. - Decided in favour of assessee.
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