TMI Blog2015 (9) TMI 1417X X X X Extracts X X X X X X X X Extracts X X X X ..... ent order under section 143(3) of the Act was originally passed by the Assessing Officer. Thus, the Assessing Officer having considered these materials while completing the original assessment, initiation of proceedings under section 147 of the Act on the basis of the very same material amounts to change of opinion. In the present case, it is apparent from the reasons recorded that there is no such material available before the Assessing Officer while he recorded his reasons for re–opening the assessment. That being the case, the re–opening of assessment on re–appreciation / review of same set of facts and material which were available at the time of completing assessment originally under section 143(3) of the Act, tantamounts to change ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest and capital gain. For the assessment year under consideration, the assessee filed its return of income originally on 30th August 2005, declaring total income of ` 60,160. In the course of assessment proceedings, the Assessing Officer, on the basis of AIR information, found that the assessee had deposited ` 73,03,000 in Corporation Bank, Shivaji Park Branch, Mumbai, till 29th March 2005. He, therefore, called upon the assessee to explain the nature of such deposits. In response to the query raised by the Assessing Officer, the assessee explained the sources of deposits in the bank account vide letter dated 17th December 2007. It was stated therein the source of such deposit is from sale of shares. In support of such claim, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... response to notice under section 148, the assessee has shown cash balance of ` 18,375, whereas in the revised return of income filed on 19th December 2007, the cash balance shown by the assessee was of ` 19,33,288=50. In response to the query raised by the Assessing Officer, though, it was submitted by the assessee that a mistake was committed while preparing the Balance Sheet as a result of which cash balance of ` 19,33,288, was shown instead of actual cash balance of ` 18,375, but the Assessing Officer did not find merit in the submissions of the assessee. He, therefore, proceeded to complete the assessment under section 143(3) r/w section 147 of the Act by treating the difference in cash balance amounting to ` 19,33,288, as unexplained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elaborating, he submitted, when the Assessing Officer, while completing the original assessment, has considered the assessee s original as well as revised return of income along with the Balance Sheet filed in those returns, the subsequent re opening on the basis of the very same material (Balance Sheet) is nothing but mere change of opinion. Hence, the re opening is invalid in law. In support of such contention, he relied upon the following decisions: i) Seimens Information System Ltd. v/s ACIT Ors., [2007] 295 ITR 333 (Bom.); ii) CIT v/s Orient Craft Ltd., ITA no.555/2012, order dated 12th December 2012 (Delhi High Court); iii) Telco Dadajee Dhackjee Ltd. v/s DCIT, ITA no.4613/Mum. /2005, order dated 12th May 2010; and iv) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 26.12.2007 assessing total income at ` 52,49,796. On perusal of Balance Sheet filed alongwith the original return it is seen that the assessee has shown cash balance at hand at ` 18,375. However, it is seen from the Balance Sheet filed alongwith the revised return, the assessee has shown cash balance at hand at ` 19,33,288. Therefore, I have reason to believe that there is under assessment of ` 19,14,913 within the meaning of item (i) clause (c) of Explanation 2 to section 147 of the I.T. Act. Thus, this is a case of deemed income escaping assessment. On a perusal of the reasons recorded, it is very much evident that the Assessing Officer only upon revisiting the Balance Sheets filed with the original return of income and revised re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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