TMI Blog2017 (2) TMI 1269X X X X Extracts X X X X X X X X Extracts X X X X ..... Kelvinator of India Ltd. (2010 (1) TMI 11 - SUPREME COURT OF INDIA) the assessee it was held by the hon'ble Supreme Court that after the amendment made with effect from April 1, 1989, the Assessing Officer has to have reason to believe that income has escaped assessment but this does not imply that the Assessing Officer can reopen an assessment on a mere change of opinion. It was held that the concept of "change of opinion" must be treated as an in-built test to check the abuse of power and hence the Assessing Officer even after the amendments made in the relevant provisions from April 1, 1989 has the power to reopen an assessment provided there is tangible material to come to the conclusion that there was escapement of income from assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome of the assessee on account of unexplained/ unproved liabilities. The total income of the assessee, accordingly was determined by the Assessing Officer at ₹ 7,00,816 in the assessment originally completed under section 143(3) vide an order dated December 19, 2006. Thereafter the Assessing Officer noticed from the balance-sheet of the assessee filed in respect of transportation business carried on in the personal name that although the assessee was the owner of seven trucks, the profits earned from hiring the same were not offered on presumptive taxation basis as provided in section 44AE of the Act. He, therefore, reopened the assessment after recording the reasons and issued a notice to the assessee under section 148. Pursuant to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration was completed by the Assessing Officer under section 143(3) of the Act after verifying all the relevant records including the books of account of the assessee. 5. Apropos this issue, the learned counsel for the assessee contended that the original assessment for the year under consideration was completed by the Assessing Officer in the case of the assessee under section 143(3) of the Act after verifying all the relevant records including the books of account of the assessee and in the absence of any new information or material coming to the possession of the Assessing Officer, the reopening of assessment on the basis of the same records was based on a mere change of opinion, which is not permissible in law. In support of this co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s pertaining to him was riot audited. In the unaudited profit and loss account (in self name), a loss of ₹ 2,46,687 was declared which was set off against the profit of other unit, M/s. Kiron Roadlines. The assessment under section 143(3) was completed on December 19, 2006 accepting the said loss. It appears from the balance-sheet for his self business that the assessee owned 7 trucks. The profits earned from hiring these trucks were not offered on presumptive taxation basis as provided in section 44AE of the Income-tax Act. Sub-section (7) of section 44AE lays down that in case the assessee has preferred to claim lower profit that what he is entitled to claim on estimation as in sub-section (2) of section 44AE of the Act he is requir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me, the learned Departmental representative has not disputed this position. The only contention raised by him is that the reopening of assessment by the Assessing Officer was based on altogether new issues, which had not been examined by the Assessing Officer during the course of the original proceedings under section 143(3). However, as submitted by the learned counsel for the assessee, the relevant records including the books of account of the assessee were duly examined by the Assessing Officer during the course of assessment proceedings and only after having satisfied with the same, the claim of the assessee was accepted by him in the assessment completed under section 143(3). The contention raised by the learned Departmental represent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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