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TMI Blog2018 (2) TMI 977X X X X Extracts X X X X X X X X Extracts X X X X ..... al or otherwise void for the want of jurisdiction. 3. On the facts and circumstances of the Appellant's case and in law the Ld. CIT(A) erred in confirming the action of A.O. of disallowing a sum of Rs. 31,37,000/- on account of manufacturing and other expenses claimed by the appellant. 4. On the facts and circumstances of the Appellant's case and in law the Ld. CIT(A) erred in confirming the action of A.O. of disallowing a sum of Rs. 1,80,437/- by invoking the provisions of section 40(a)(ia) of the Income Tax Act, 1961. 5. On the facts and circumstances of the Appellant's case and in law the Ld. CIT(A) erred in confirming the action of A.O. of disallowing a sum of Rs. 3,91,653/- by invoking the provisions of section 43B of the Income Tax Act, 1961." 3. The brief facts of the case are that the assessment was completed under Section 143(3) r.w.s. 153A of the Income Tax Act (hereinafter "the Act") on 22.12.2008 determining the total income at Rs. 18,90,05,530/-. Thereafter the case of the assessee was reopened under Section 147 of the Act by issuing notice under Section 148 dated 15.03.2011 by recording the following reasons: - "On verification of records, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee by observing and holding as under: - "5.0 I have carefully examined the facts of the case, the stand taken by the Assessing Officer in the assessment order, the grounds of appeal and the written submissions filed by the appellant during the appeal proceedings. 5.1 The issue for which the assessment is re-opened have not been examined by the assessing officer during the original assessment. The appellant contends that the reopening of the assessment by the A.O is based on mere change of opinion and it is bad in law and the same requires to be quashed. It is true that no assessment can be reopened by mere change of opinion. During the course of appeal proceedings, the appellant produced a questionnaire issued by A.O. in support of its contention that the issues under dispute have already been examined by the A.O. I have examined the questionnaire issued by the A.O and I find that the questionnaire issued is very general and is not very specific to any issue at hand. The Hon'ble Karnataka High Court in the case of CIT vs. Infosys Technologies Ltd. (341 ITR 293), in a case involving 263 proceedings held that until otherwise the A.O gives specific reasons for any f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to light establishing application of mind by the A.O. on the issues under dispute in the original assessment proceedings, re-assessment proceedings u/s 147 of the Act do not suffer any infirmity. Accordingly, the ground of appeal filed by the appellant is hereby dismissed." Aggrieved, assessee is in appeal before us. 4. The learned A.R. of the assessee vehemently submitted before us that the order passed by the CIT(A) is against facts and law of the case and therefore should be reversed as the very reopening proceedings were not validly done by the AO. The learned A.R. submitted that the entire reassessment proceedings were based upon the information and records which were available before the AO at the time of original assessment and the AO after re-examination of the same formed a belief that the income has escaped assessment. Thus the re-opening of assessment by the AO is a patent example of change of opinion which is not permissible under the Act. The learned A.R. also submitted that all the three additions, namely, donation and charity of Rs. 31,37,000/-, disallowance under Section 40(a)(ia) of Rs. 1,80,437/- and disallowance on account of provision for gratuity of Rs. 3,91, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings should be quashed as void abinito being based upon a change of opinion by the AO. 5. The learned D.R., on the other hand, relied on the orders of the Authorities below by submitting that the assessment was rightly reopened under Section 147 r.w.s 148 of the Act as the income on three issues, viz., donation and charity of Rs. 31,37,000/-, disallowance under Section 40(a)(ia) of the Act of Rs. 1,80,437/- as audit report and disallowance on account of provision for gratuity of Rs. 3,91,653/- have clearly escaped assessment and therefore the order of the CIT(A) deserved to be upheld. The learned D.R. relied on the orders of the Hon'ble Supreme Court in the cases of CIT vs. Rajesh Jhaveri Stock Brokers Pvt. Ltd. in Appeal (Civil) No. 2830 of 2007 and Raymond Woollen Mills Ltd. vs. ITO and Others 236 ITR 34 in which the reopening of assessment was upheld by the Hon'ble Apex Court. 6. We have heard the rival submissions and perused the relevant materials on record including the impugned order and case laws relied upon by the rival parties. The undisputed facts are that the AO has reopened the assessment under Section 147 of the Act after recording reason to believe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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