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2018 (11) TMI 434 - AT - Income TaxReopening of assessment - addition towards bogus purchases - reopening on the basis of the same material which was before the Investigating Officer at the time of original Assessment Proceedings - borrowed knowledge - Held that:- Assessing Officer has acted merely on the basis of the statements/affidavits of the thirteen parties without carrying on any further verification or independent enquiry before issuing notice u/s. 148 of the Act and thus has completely failed on the duty casted upon him to independently apply his mind on the material received from the DGIT (Inv), Mumbai. Also found merit in the second limb of the submissions of the assessee that reopening on the basis of the same material which was before the Investigating Officer at the time of original Assessment Proceedings is nothing but a change of opinion which is not permissible under the law and the concept of change of opinion is a built in test to check the abuse of power to reassess but no power to review under the garb of reopening the Assessment Proceedings is available. Reopening of assessment on the basis of change of opinion is not permissible - COMMISSIONER OF INCOME TAX, DELHI VERSUS M/S. KELVINATOR OF INDIA LIMITED [2010 (1) TMI 11 - SUPREME COURT OF INDIA] The Hon'ble Supreme Court in LAKHMANI MEWAL DAS [1976 (3) TMI 1 - SUPREME COURT] has held that the power of Income Tax Officer to reopen assessment though wide, are not plenary and absolute and the words of statute are “reason to believe” and not “reason to suspect”. But in this case only the AO has “reason to suspect” and not “reason to believe”. We, therefore after taking into account the ratio laid down by the various decisions and facts of the case before us, are inclined to hold that reopening of assessment not initiated validly and is void ab-initio. Accordingly we quash the reopening of assessment. - Decided in favour of assessee
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