TMI Blog2012 (11) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... part from recommendation of audit party, the A.O. was not having any fresh information so as to form belief that the income has escaped assessment. The Ld. D.R. could not controvert the findings of CIT (A) by bringing any contrary material on record - in favour of assessee. - I.T. A. No.295/AHD/2010 - - - Dated:- 19-10-2012 - SHRI G.C.GUPTA SHRI ANIL CHATURVEDI, JJ. Appellant by: Mr. B.L. Yadav Respondent by: Mr. P.M. Patel. ORDER PER: SHRI ANIL CHATURVEDI, A.M. This appeal is filed by the Revenue against the order of Ld. CIT (A)- XVI, Ahmedabad dated 27-11-2009 for the assessment year 2003-04. 2. In this case original return of income was filed on 13-11-2003 declaring loss of Rs.21,63,332/-.The assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income has escaped assessment. The assessment was reopened only on the basis of recommendation of the revenue audit party and therefore it amounts to change of opinion. It was further submitted that reassessment cannot be made on the basis of change of opinion. CIT (A) agreed with the contentions of the assessee and held reassessment proceedings to be bad in law by holding as under: 6. I have considered the submissions of the appellant. As stated earlier in original assessment proceedings for A.Y. 2003-04 dated 29- 3-2006, the A.O. decided the issue of foreign travel expenses as under:- Assessee has claimed an amount of Rs.8,55,759/- as foreign traveling expenses. The assessee has not furnished complete details such as bills, tickets ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer in his assessment order dated 29-3-2006,therefore,it cannot be stated that there was new information available with the Assessing Officer at the time of issuing notice u/s. 148.It is mere change of opinion of the Assessing Officer. The Hon ble High Court of Gujarat and Apex Court have held as under:- Change of opinion of A.O. is not a valid ground for reassessment 231 ITR 779 (Guj.) Sarabhai M. Lakhani 249 ITR 306 (SC) Lucas TVS Ltd Reasons based on opinion of audit party is not valid to reopen assessment by A.O. 8. I therefore have no hesitation in holding that the notice u/s.148 issued for A.Y. 2003-034 is based on mere change of opinion and therefore the re-assessment proceedings u/s.148 for A.Y. 2003-034 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he material on record. The factual matrix is that while passing the original order u/s.143(3), on the basis of material and after satisfying himself with the facts, disallowed 25% of foreign travel expenses. Later on, on the basis of recommendation of the Revenue audit party, the assessment was reopened. We find that apart from recommendation of audit party, the A.O. was not having any fresh information so as to form belief that the income has escaped assessment. 9. The Revenue has relied on the decision in the case of CIT vs. P.V.S. Beedies (P) Ltd. (1999) 237ITR 13 (SC). In this case the facts are that the reopening of assessment was restored because in the original assessment donations made to a charitable trust were held by the A.O. t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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