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2015 (12) TMI 1019 - ITAT MUMBAI

2015 (12) TMI 1019 - ITAT MUMBAI - TMI - Reopening of assessment - Held that:- The order of the A.O, no where speaks about having a new material or any tangible material to reopen the case. The Learned CIT(A) has recorded a finding that the assessing officer has called for relevant details during the course of original assessment proceedings. Hence it is quite clear that the reopening was done on the basis of change of opinion. It is well settled proposition that reopening cannot be done on the .....

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Finance & Management (P) Ltd. Vs. ACIT 7(2), Mumbai (2007 (2) TMI 240 - ITAT BOMBAY-J) it has been held that the fair market value and sale value is clearly distinguishable. Therefore, we are of the view that, without any supporting material, the A.O. cannot substitute market value. Therefore, order of the CIT(A) under challenge is not required to be interfered with on any ground. - Decided in favour of assessee. - ITA No. 205 & 206/M/13 - Dated:- 30-10-2015 - B. R. Baskaran, AM And Amarjit Sing .....

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,68,872/- as against returned loss of ₹ 49,22,280/-. Assessment was thereafter reopened u/s 147 of the Income Tax Act 1961 ( in short "the Act") to bring to tax claim of finance charges by the assessee, to disallow interest claimed by assessee for diversion of interest bearing activities and loss claimed on sale of shares and debentures. Notice u/s. 148 was issued on 30.03.2007. In response to the notice issued, assessee filed a copy of return of income on 08.05.2007, declaring t .....

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disallowance should not be made on interest free loans given to holding company. (3) Details of loss in sale of shares and debentures and explanation as to why these loss should not be disallowed". Subsequently, the financial charges to the tune of ₹ 46,67,915/- and loss claim on sale of shares and debentures amounting to ₹ 5,38,332/- ( 1,83,84,865 - 1,78,46,533) was disallowed. 3. Thereafter the assessee filed appeal before CIT(A) 7, Mumbai wherein he challenged the validity o .....

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e case of the appellant. Further to that, even I find that the A.O. reopened the assessment based on the details available on record without any new information brought or gathered by the A.O. other than what was available on record. Hence I am of the considered view that A.O.'s action of reopening of assessment will amounts to change of opinion, as has been declared and stated by the Hon'ble Supreme Court in the case of Kelvinator of India Ltd. 320 ITR 561 (SC). Further I find that the .....

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ssing officer to reopen an assessment within a period of four years of the relevant assessment year is undoubtedly wider than where a period of four years has elapsed. However, the decision of the Supreme Court in CIT vs. Kelvinator of India Ltd. [2010} 320 ITR 561 (SC) makes it clear that an assessment cannot be reopened on the basis of a mere change of opinion. There should be tangible material to come to a conclusion that there is an escapement of income from assessment year may furnish a fou .....

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nt itself is not maintainable as per provisions of law, as original assessment was completed u/s 143(3) of the IT Act after considering the complete records from the appellant. In my view, the reopening is simply a change of opinion without any new information received in that particular year from the date of original assessment to the date of this assessment order, as held by the Apex Court in the case of Kelvinator of India Ltd. 320 ITR 561(SC). Accordingly in my considered view, this is simpl .....

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a new material or any tangible material to reopen the case. The Learned CIT(A) has recorded a finding that the assessing officer has called for relevant details during the course of original assessment proceedings. Hence it is quite clear that the reopening was done on the basis of change of opinion. It is well settled proposition that reopening cannot be done on the basis of change of opinion. In this regard, we rely on the decision of Hon'ble Supreme Court in the case of Kelvinator of Ind .....

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99,800/- of M/s. Rainbow Agri Industries Ltd., at a face value of ₹ 1/-. The A.O. was not satisfied with the selling price and determined value of each share at ₹ 3.50/- on the basis of market value. However, the learned CIT(A) accepted the sale price at ₹ 1.00 per share. The Learned representative in support of his contention placed reliance on the law settled in case of K.P.Varghese Vs. ITO (1981) 131 ITR 597 (SC) and Rupee Finance & Management (P) Ltd. Vs. ACIT 7(2), Mum .....

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sideration' cannot be construed as having reference to market value of assets transferred but refers to price bargained for by parties and it cannot refer to adequacy of consideration - Held, yes - Whether where assesseecompanies transferred shares to a group company under an arrangement at cost for which they purchased those shares and there was no material to show that assessee had received more than what had been disclosed in books, difference between fair market value' and cost at wh .....

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ction of section 52(2)would be read into it a condition that it would apply only where the consideration for the transfer is understated or, in other words, the assessee has actually received a larger consideration for the transfer than what is declared in the instrument of transfer and it would have no application in case of a bona fide transaction where the full value of the consideration for the transfer is correctly declared by the assessee. Accordingly, if the revenue seeks to bring a case .....

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