TMI Blog1998 (10) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... end income was wrongly calculated. Therefore, notice under section 148 was issued on 6-10-1993. Subsequently, the Assessing Officer passed order under section 143(3) read with section 147 of the Income-tax Act on 28-2-1996. There is nothing in the order mentioned regarding the validity or otherwise of the reassessment. The assessment was challenged by the assessee also on the ground that reopening under section 147 was bad in law. The assessee contended before the CIT(A) that all the facts were before the Assessing Officer who had done the assessment at the first instance and the subsequent opinion formed by the second incumbent was a change of opinion and mere change of opinion does not give any legal sanctity to reopen the assessment unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see. It is against this order, the revenue is in appeal before the Tribunal. 3. The learned Departmental Representative submitted that subsequent to the decision of the Hon'ble Supreme Court relied upon by the learned CIT(A), the section had undergone a change of great magnitude and, therefore, the learned CIT(A) was not justified in holding that the Supreme Court decision still lays down the law. Relying upon the decision of the Hon'ble Supreme Court in the case of CIT v. Sun Engg. Works (P.) Ltd. [1992] 64 Taxman 442/198 ITR 297, the learned Departmental Representative submitted that it is neither desirable nor permissible to pick out a word or sentence from the judgment of the Supreme Court divorced from the context of the question und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m made under section 80M by the assessee was allowed. However, the incumbent Income-tax Officer reopened the assessment and disallowed the claim under section 80M of the Income-tax Act, 1961. This being a change of opinion in respect of decided matter, cannot be reopened, as has already been held by the Supreme Court. The matter was argued in detail before the ld. CIT(Appeals). After due verification of all the relevant facts and law applicable thereto, the learned CIT(Appeals) decided the appeal in favour of the assessee. The respondent strongly supports and relies and the same. The respondent for some unavoidable reasons, is unable to appear on the date of hearing. However he submits that the appeal may kindly be decided and dispose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amendment brought in by the Direct Tax Laws (Amendment) Act, 1987 with effect from 1-4-1989, section 147 reads as under:- "(a) If the Assessing Officer has reason to believe that, by reason of the omission of failure on the part of an assessee to make a return under section 139 for any assessment year to the Assessing Officer or to disclose fully and truly all material facts necessary for his assessment for that year, income chargeable to tax has escaped assessment for that year, or (b) Notwithstanding that there has been no omission or failure as mentioned in clause (a) on the part of the assessee, the Assessing Officer has in consequence of information in his possession reason to believe that income chargeable to tax has escaped asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1922, the Income-tax Officer got jurisdiction to reopen the assessment, if the Officer had reason to believe that by reason of the omission or failure on the part of the assessee to make a return of his income under section 22 or to disclose fully and truly all material facts necessary for his assessment for that year, and income profits or gains chargeable to income-tax have escaped assessment for that year, or have been under-assessed, or assessed at too low a rate, or have been made the subject of excessive relief under the Act, or excessive loss or depreciation allowance has been computer or if there was no failure or omission on the part of the assessee but subsequently, the Officer has, in consequence of information in his possessio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. His reason is not to be judged by a Court by the standard of what the ideal man would think, held the Gujarat High Court. The Court further held that "he is the actual man trusted by the Legislature and charged with the duty of forming of a belief, for the mere purposes of determining whether he should proceed to collect what is strictly due by law and no other authority can substitute its standard of sufficient reason in the circumstances or his opinion or belief for him. "Their Lordships of the Gujarat High Court further held-"Therefore, unless it is shown that the Assessing Officer never enquired into the matter at all or that he never honestly believed that a mistake has been made, the result of his investigation and initiation of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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