Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (10) TMI 757 - AT - Income TaxReopening of assessment u/s 147 - whether AO had no any new tangible materials and the AO has referred to the computation of taxable income which was already available during the course of assessment completed u/s 143(3) ? - HELD THAT:- On perusal of the letter in which the contents of the reasons for reopening has been mentioned, the copy of reasons were provided to the AR of the assessee, which is clear from the reassessment order. Therefore, we reject the contention of the ld.AR that the reason for reopening was recorded after issuance of notice u/s 148 of the Act. On observation of the above letter, it is clear that before reopening the case, the AO had no any new tangible materials and the AO has referred to the computation of taxable income which was already available during the course of assessment completed u/s 143(3) of the Act. It means it is complete change of opinion by the AO, which is not tenable in the eye of law. AO reopened assessment on mere ground that expenditure incurred by assessee-company, for renovation of hotel expenses and rates and taxes claimed as FBT payable, since said reason for reopening was based on same set of information which was available at time of original assessment proceedings, , therefore, reopening of assessment based on a mere change of opinion is invalid and not permissible under the law. No substance on the submission of ld.DR on this issue. Further, on other legal issues that the assessee could not produce substantial evidence for deciding the issues. Since we have quashed the reopening of the reassessment on the basis of change of opinion, therefore, the entire reassessment order does not survive. Accordingly, the appeal of the revenue also does not survive.
|