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2021 (4) TMI 75 - HC - Income TaxReopening of assessment u/s 147 - reopening after 4 years from the end of relevant financial year - HELD THAT:- After careful examination of the assessment order and materials furnished by the assessee at the stage of previous assessment, would go to show that there was conscious application of mind to the issue of deduction by the then AO and after considering the evidences and materials, he thought not fit to disallow the deduction. A mere change of opinion while persuading the same material by the AO, while initiation of the proceedings, cannot be a reasons to believe that the income has escaped assessment. Thus, once an opinion is formed on the issue of deduction and assessment on the issue was framed under Section 143 the reopening on the same set of facts and material, without there being any tangible material would be nothing but a change of opinion. We take the notice of the fact that the assessee had disclosed true facts with regard to claim of deduction under Section 80IB(10) of the Act while filing return of income and same had been mentioned in the audit report as well as Form 10CCB and considering these materials, the then Assessing Officer did not disallow the deduction. Therefore, the condition precedent for reopening of the assessment beyond 4 years having not satisfied and on this ground also, the impugned notice is required to be quashed and set aside. No hesitation to hold that there was no basis or jurisdiction for Assessing Officer to form a belief that any income of the assessee chargeable to tax for the year under consideration, had escaped assessment under Section 147 of the Act and reasons recorded could not have led to formation of any belief that income had escaped assessment.
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