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TMI Blog2010 (3) TMI 1195X X X X Extracts X X X X X X X X Extracts X X X X ..... sed u/s.143(1) of the Income Tax Act, 1961(the Act) on the same income. Subsequently the assessee filed revised return declaring total income of ₹ 8,11,45,120/- wherein claim of estimated expenses @ 30% amounting to ₹ 6,31,78,584/- was made. Later on, the assessee vide letter dated 13.3.2004 withdrew the revised return alongwith claim of expenses @ 30% for the reasons that "the estimated claim of expenses @ 30% was made under the bonafide belief that the said estimated expenses are legal and allowable, however due to non-availability of staff's and my pre-engagement it shall not be feasible to substantiate the said estimated expenses as claimed, therefore the re-revised return filed on 31.03.2003 is withdrawn." On 29.3.2005, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 bank accounts, but details in respect of 6 bank accounts were furnished. Details in respect of S.B. A/c. No.107456 with S.B.I. were neither provided nor called for by the A.O which might have been maintained by the assessee for professional receipts from EEL/Star TV etc. (vi) Receipts of dividend from Vithal Nagar Co-op. Society with reference to investment in house property. (vii) Sources of cash deposits in saving Bank A/c. No.11155. (viii) Distribution income from M/s. Ethnic Enterprises. (ix) Deposits in S.B. A/c. No.11155 under the head 'Receipts on behalf of Mrs. Jaya Bachchan." The AO after giving opportunity of being heard to the assessee and after examining the details furnished by the assessee, completed the impugned as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus, the assessment order framed on the basis of such notice is, hereby annulled." 4. Being aggrieved by the order of the ld. CIT(A) the revenue is in appeal before us taking following effective ground of appeal. "On the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in holding that the Assessing Officer had wrongly assumed jurisdiction in terms of section 147 of the Act and thereby annulling the assessment order holding the same to be illegal, bad in law and void, ignoring the fact that the Assessing Officer had sufficient reason to believe and there was no change of opinion inasmuch as during the assessment proceedings, the Assessing Officer was examining the allowability of the expenses and not the appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of consideration by the AO which was claimed by the assessee as deduction from the total professional receipts, but later on withdrew vide letter dated 13.3.2004. It is only after considering the same, the AO passed original assessment order u/s.143(3) of the Act accepting interalia the disallowance of 30% expenses as claimed by the assessee. There is no material on record to show that the AO has reason to believe that the assessee has incurred the said expenses out of his undisclosed sources of income justifying invocation of provision of sec.69C of the Act. In the absence thereof we are of the view that the AO was not justified in initiating re-assessment proceedings against the assessee. 8. With regard to the re-opening of the assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 147 of the Act. 9. Recently the Hon'ble Supreme Court in CIT vs. Kelvinator of India Ltd. (2010) 320 ITR 561 after considering the pre-amended provisions and post amended provisions of Section 147 w.e.f. 1.4.1989 has observed and held as under (placitum-6 at page-564 of the ITR): "On going through the changes, quoted above, made to section 147 of the Act, we find that, prior to the Direct Tax Laws (Amendment) Act, 1987, reopening could be done under the above two conditions and fulfillment of the said conditions alone conferred jurisdiction on the Assessing Officer to make a back assessment, but in section 147 of the Act (with effect from 1st April, 1989), they are given a go-by and only one condition has remained, viz., that where t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer. We are of the view that the order of learned CIT(A) dose not call for any interference. As rightly held by learned CIT(A) initiation of reassessment proceedings was merely on change of opinion. Perusal of the reason recorded for initiating reassessment proceedings clearly shows that there is no new material which has come to the knowledge of the Assessing Officer after passing of the original order of the assessment u/s. 143(3) of the Act. It is also clear that when the original assessment proceedings were completed u/s. 143(3) of the Act, the issue with regard to estimated expenditure of 30% of the professional receipt was subject matter of consideration by the Assessing Officer. The assessee filed revised return of in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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