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2020 (8) TMI 764 - HC - Income TaxReopening of assessment u/s 147 - reassessment initiated after four years - Whether no fresh material on record for such reassessment proceedings? - product development expenses disallowance - HELD THAT:- It is to be noted that in the present case, the return was filed on 13.11.2007 for the assessment year 2007-08, for which reassessment proceedings under sections 147 and 148 ought to have been initiated within the period of four years, which was over by 31.03.2012. But, the notice for reassessment proceedings under Section 148 was issued on 11.06.2013, beyond the period of limitation. Therefore, we do not find any error in the finding of the Income Tax Appellate Tribunal in this aspect. Product development expenditure incurred to the extent of ₹ 3.39 crore by the assessee, is entitled to be amortized over the period of three years as per the accounting practice adopted by the Company and the assessee has rightly amortized the same. Re-assessment provisions under Section 147 of the Act do not provide for reassessment on a mere change of opinion. The re-assessment on a mere of change of opinion is not permissible under law. Such change of opinion amounts to review of the order of the assessment, which is not permissible under law. In support of our opinion, we would like to press into service the Judgment of Commissioner of Income Tax, Delhi Vs. Kelvinator of India Ltd. [2010 (1) TMI 11 - SUPREME COURT]. - Decided in favour of assessee.
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