TMI Blog2012 (10) TMI 573X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee in not disclosing fully and truly all material facts. In the circumstances, applying the Supreme Court decision in CIT, Delhi Versus M/s. Kelvinator of India Limited [2010 (1) TMI 11 - SUPREME COURT OF INDIA] AO has no power to review and has the power to re-assess. But re-assessment has to be based on fulfillment of certain pre-condition and if the concept of "change of opinion" is removed then in the garb of re-opening the assessment, review would take place - to reopen an assessment tangible material should be there & reasons must have a live link with the formation of the belief - no hesitation in accepting the plea of the assessee that the assumption of the jurisdiction beyond four years is hit by limitation as provided und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 80I of the Income Tax Act on the total income before first setting off the unabsorbed losses of the earlier years. Therefore, according to the Assessing Officer, as the assessee was not entitled to deduction under Chapter VIA of the Income Tax Act, the assessment was reopened under Section 147 of the Income Tax Act by issuance of notice under Section 148 of the Income Tax Act. The assessee objected to the reopening of the assessment by contending that as the said reopening was made after the lapse of four years from the date of assessment under Section 143(3), the reopening was not valid and there was no failure on the part of the assessee to disclose all material facts necessary for making the assessment. Therefore, the said reopening o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oubt true that the assessee would not be entitled to deduction under Chapter VIC. However, as rightly pointed out by the learned counsel appearing for the assessee, with no reasons disclosed on the reopening of the assessment and that there is no denial of the fact that the details of the income computation being very much before the Assessing Officer, the assessee took the plea of reopening of the assessment not disclosing the materials as contemplated under Section 147(1). The time limit for invoking the jurisdiction under Section 147 being four years, the proceedings were time barred. 6. In the decision reported in [2010] 320 ITR 561 (Commissioner of Income Tax Vs. Kelvinator of India Ltd.), the Apex Court considered the scheme of Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the words "reason to believe", Parliament re-introduced the said expression and deleted the word "opinion" on the ground that it would vest arbitrary powers in the Assessing Officer. We quote herein below the relevant portion of Circular No.549 dated 31st October, 1989, which reads as follows: 7.2 Amendment made by the Amending Act, 1989, to reintroduce the expression `reason to believe' in Section 147.--A number of representations were received against the omission of the words `reason to believe' from Section 147 and their substitution by the `opinion' of the Assessing Officer. It was pointed out that the meaning of the expression, `reason to believe' had been explained in a number of court rulings in the past and was well settled and i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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