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2020 (1) TMI 1014 - AT - Income TaxReopening of assessment u/s 147 - liability to deduct tax at source under section 194C on labour expenses - as per assessee reason is erroneous as the assessee being an individual was not liable to deduct tax at source, since the assessee was not covered under section 44AB in the preceding year, the Explain-L to section 194C of the Act was not applicable. HELD THAT:- While reopening of assessment the AO has considered current assessment year’s turnover to invoke provisions of section 194C which is not applicable as the assessee being individual. Hence, reasons were on wrong premises, which are not permitted under the statutes. Further, the AO has improved reasons for reopening of assessment during assessment proceeding, however, same is also not permissible. Further, the AO has erroneously considered total turnover including WIP which is not correct as turnover does not include WIP as held by Co-ordinate Bench of Kolkata Tribunal as discussed above. Further, the AO had no new tangible material, in his possession and relied on same assessment records which were already available with him and duly examined during scrutiny proceedings under section 143 (3) of the Act. Therefore, reopening of assessment on same material is not permissible as held by the Hon`ble Supreme Court in the case of ACIT v. ICICI Securities Primary Dealership Ltd. [2012 (8) TMI 754 - SC ORDER] wherein it was held that “where accounts had been furnished by assessee when called upon and thereafter, assessment was completed u/s.143(3), subsequently, on a mere re-look of said accounts earlier furnished by assessee it is not permissible under section 147 to reopen assessment of assessee on ground that income has escaped assessment”. In view of these facts and circumstances, we quash the reopening of assessment and allowed the grounds of appeal the assessee.
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