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2018 (3) TMI 295 - AT - Income TaxReopening of assessment - change of opinion - eligibility of reasons to believe - reduction of entertainment tax subsidy from the cost of assets for the purpose of depreciation - Held that:- From the reasons recorded for re–opening of assessment under section 147 it is evident that the formation of belief for escapement of income is on the reason that the entertainment tax subsidy received by the assessee should be reduced from cost of assets, thereby, no depreciation is allowable to the assessee on such assets. From the reasons recorded, it is very much evident that at the time of recording of reasons for re–opening of assessment no fresh tangible material was available with the Assessing Officer. On mere re–visit and re–appraisal of the materials already available on record and considered by the Assessing Officer in original assessment proceedings, the Assessing Officer formed an opinion that income has escaped assessment. Re–opening of assessment is on a mere change of opinion. AO in the original assessment proceedings, has not expressed any opinion with regard to the applicability of Explanation 10 to section 423(1), however, it is evident that he had examined the issue in the original assessment proceedings. If he had any doubt he certainly would have mentioned in the assessment order that in the event of the receipt being held as capital in nature, the subsidy received should have been reduced from the actual cost for computing depreciation. Having not stated so in the original assessment order cannot lead to the conclusion that the Assessing Officer has considered the issue at all. That being the case, in the absence of any fresh tangible material, the re–opening of assessment under section 147 in the present case is invalid. - Decided in favour of assessee.
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