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TMI Blog2017 (12) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... on with exploration and extraction and production of mineral oils. During the year under consideration, the assessee has filed the return of income on 29.10.2004 at Rs. 444,006,980/- u/s 44BB(3) of the Income Tax Act (hereinafter to be referred as 'the Act'). The return was scrutinized u/s 143(3) of the Act. The order was passed on 30.12.2005 at an income of Rs. 212,140,550/-. The notice was issued to the petitioner company u/s 148 of the Act to reassess the income for the assessment year 2004-05. Petitioner company submitted before the respondent no.1 that the return filed u/s 139(1) of the Act may be treated as return filed u/s 148 of the Act. Petitioner company was directed to submit the return within 30 days in the prescribed format. Pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he respondent no.1. 4. Their Lordships of Hon. Supreme Court in (2010) 2 SCC 723 in the matter of 'Commissioner of Income Tax Delhi v. Kelvinator of India Ltd.' has held that after amendment of 1989, the A.O. can reopen assessment provided he has 'reason to believe' that income has escaped assessment based on tangible material. It was further held that mere 'change of opinion' does not empower the A.O. to review assessment in the garb of reassessment. Their Lordships have held as under: - "5. 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 fulfilment of the said conditions alone conferre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made to Section 147 of the Act, as quoted hereinabove. Under the Direct Tax Laws (Amendment) Act, 1987, Parliament not only deleted the words "reason to believe" but also inserted the word "opinion" in Section 147 of the Act. However, on receipt of representations from the companies against omission of the words "reason to believe", Parliament reintroduced the said expression and deleted the word "opinion" on the ground that it would vest arbitrary powers in the assessing officer. 8. We quote hereinbelow the relevant portion of Circular No. 549 dated 31-10-1989, which reads as follows: "7.2. Amendment made by the Amending Act, 1989, to reintroduce the expression 'reason to believe' in Section 147.-A number of representations were recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Division Bench further held that the there may be a presumption that the assessment proceedings have been regularly conducted, but there can be no presumption that even when the order of assessment was silent, all possible angles and aspects of a controversy had been examined and determined by the Assessing Officer. The principle that a mere change of opinion cannot be a basis for reopening computed assessments would be applicable only to situations where the assessing officer has applied his mind and taken a conscious decision on a particular matter in issue. It would have no application where the order of assessment does not address itself to the aspect which was the basis for reopening of the assessment. Their Lordships in paragraph no.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rite that a matter in issue can be validly determined only upon application of mind by the authority determining the same. Application of mind is, in turn, best demonstrated by disclosure of mind, which is best done by giving reasons for the view which the authority is taking. In cases where the order passed by a statutory authority is silent as to the reasons for the conclusion it has drawn, it can well be said that the authority has not applied its mind to the issue before it nor formed any opinion. The principle that a mere change of opinion cannot be a basis for reopening computed assessments would be applicable only to situations where the assessing officer has applied his mind and taken a conscious decision on a particular matter in i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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