TMI Blog2019 (7) TMI 1321X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO had issued notice u/s.154, therefore, it was also not in dispute that the alleged discrepancies were nothing but mistake apparent from record. Considering the peculiar situation under which the proceedings were started u/s.147/148 hereby hold that the law does not permit a settled issue to get unsettled by reopening the same I also find that law relating to change of opinion being not permissible for invoking proceedings u/s 147 of the Act is now well settled in the case of Kelvinator of India Ltd. [ 2010 (1) TMI 11 - SUPREME COURT] . In this case, on the basis of change of opinion, the Assessing officer has resorted to section 147 in reopening of assessment and, therefore, quash the reassessment proceedings u/s.147 and allow thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ofit and loss account, it was seen that a sum of ₹ 19,88,231.01 has been shown as its gross receipt/income with TDS credit of ₹ 1,74,926/-. So the assessee firm has suppressed balance receipt/income amounting to ₹ 11,70,702.99 (₹ 31,58,934. ₹ 19,88,231.01). 4. In response to notice u/s.148 of the Act, the assessee requested to treat the return filed u/s.139(1) dated 31.10.2007 as valid return. Thereafter, the Assessing officer issued notice u/s.143(2) of the Act and the assessee appeared and matter was discussed. The Assessing Officer vide order dated 31.10.2011 u/s.143(3)/147 of the Act, determined the total income at ₹ 16,58,990/-, making various disallowances. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /material came to the knowledge of the assessing officer subsequent to the conclusion of the original assessment. The reasons recorded by the assessing officer do not even indicate or allege that any fresh information came to the knowledge of the assessing officer warranting exercise of jurisdiction under section 147/148 of the Act. 8. He relied on the decision of the Hon ble apex Court in CIT v. Kelvinator of India Ltd.: 320 ITR 561(SC). The relevant observations of the apex Court are as under: On going through the changes, quoted above, made to Section 147 of the Act, we find that, prior to Direct Tax Laws (Amendment) Act, 1987, reopening could be done under above two conditions and fulfil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... link with the formation of the belief. 9. It was further argued that in the present case on the basis of books of account and other materials, the Assessing Officer have examined the issue of disallowance gross commission/brokerage, contract receipts, etc. and, therefore, it is presumed that he applied his mind to the material on record and formed an opinion. Therefore, in the absence of any fresh material, the reappraisal of same material to initiate reassessment proceedings tantamounts to change of opinion and hence bad in law. 10. Replying to above, ld D.R. submitted that production of books of account and other details before the AO in the course of assessment proceedings cannot stand in the way of initiat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame. I also find that law relating to change of opinion being not permissible for invoking proceedings u/s 147 of the Act is now well settled by Hon ble Supreme Court in the case of Kelvinator of India Ltd., (supra). In this case, on the basis of change of opinion, the Assessing officer has resorted to section 147 of the Act in reopening of assessment and, therefore, I quash the reassessment proceedings u/s.147 of the Act and allow this ground of appeal. 12. Since, I have quashed the reassessment proceedings u/s.147 of the Act on legal ground, hence, other grounds taken by the assessee on merits have become infructuous. 13. In the result, appeal of the assessee is allowed. Order pronounced on 24 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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