9911796707
TMI Blog2015 (2) TMI 1267X X X X Extracts X X X X X X X X Extracts X X X X ..... anation 2(c)(i) , (iii) and (iv) of the Income Tax Act, 1961 (the Act). 2. Briefly stated, the facts of the case are that the original return was filed on 31/10/2002 declaring total income at Rs. 351.21 crores. The assessment was completed on 25/2/2005 determining the total income at Rs. 899.06 crores. Thereafter assessment was reopened under section 147 of the Act by issuing notice under section 148 of the Act dated 26/03/2007. The reasons for reopening of the assessment read as under: "The assessee company had claimed deduction of Rs. 3,39,96,92,465/- as Misc. Expenditure. This amount was not passed to the P&L A/c. The AO disallowed only Rs. 2,42,22,50,540/- on account of issue expenses on rupee loan/debenture/fixed deposits and foreig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the A.O. at the time of original assessment passed u/s 143(3) of the Act as per para-7 of the assessment order and also duly disclosed by the appellant bank. In view of the same and also after taking note of Apex Court decision in the case of CIT vs. Kelvinator India Ltd. reported in 325 ITR page 56 & the decision of jurisdictional High Court decision, which has been taken note by the Hon'ble Bombay High Court in the appellant's own case itself by ITA No.1237 of 2011 dated 09/107/2012, I have no hesitation to hold that reopening of assessment is merely based on change of opinion in the appellant's case, which is not based on any tangible material in the possession of the A.O. Hence, in this background of the appellant's case, I consider it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are valued in accordance with valuation norms applicable to banks by direct debit to capital reserve/general reserve. Figures the previous year are not comparable with the current period figures for 363 days." 5.1 It is apparent that a detailed disclosure was made by the assessee in relation to the claim of expenditure. Reopening the assessment on the very same set of facts which were very much available at the time of the original assessment proceedings is nothing but a change of opinion. In our considered opinion one needs to give a schematic interpretation of the words " reason to believe" failing which, section 147 would give arbitrary powers to the AO to reopen the assessment on the basis of "mere change of opinion", which cannot be p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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