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TMI Blog2020 (3) TMI 499X X X X Extracts X X X X X X X X Extracts X X X X ..... ongly been given to the assessee. 2. The brief facts are that assessee had claimed the deduction under Section 80-I of the Act in the year 1997-1998. In the final assessment under Section 143(3) of the Act, the issue of this deduction was gone into detail by the A.O and a portion of it was disallowed. Thereafter notice under Section 148 of the Act was issued to the assessee claiming that the benefit of Section 80-I of the Act had wrongly been extended. Ultimately the Tribunal set aside this order holding that the primary condition of Section 147 of the Act viz 'reason to believe' (as defined by a plethora of judgments) did not exist and it was merely a case of change of opinion at best, which could not be permitted. 3. The argumen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oks or other evidence from which material evidence could, with due diligence, have been discovered by the Assessing Officer will not necessarily amount to disclosure within the meaning of the foregoing proviso. Explanation 2.- For the purposes of this section, the following shall also be deemed to be cases where income chargeable to tax has escaped assessment, namely:- (a) XXXXX XXXXX XXXXX XXXXX (b) XXXXX XXXXX XXXXX XXXXX (c) where an assessment has been made, but- (i) income chargeable to tax has been under- assessed; or (ii) such income has been assessed at too low a rate; or (iii) such income has been made the subject of excessive relief under this Act; or (iv) excessive loss or depreciation allowance or any other allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of India Ltd and Another; 2010 (320) ITR 561 (SC) and particularly to the following part of the judgment: "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, re-opening could be done under above two conditions and fulfillment of the said conditions alone conferred jurisdiction on the Assessing Officer to make a back assessment, but in section 147 of the Act [with effect from 1st April, 1989], they are given a go-by and only one condition has remained, viz., that where the Assessing Officer has reason to believe that income has escaped assessment, confers jurisdiction to re- open the assessment. Therefore, post-1st April, 1989, power to re-open is much ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pression and deleted the word "opinion" on the ground that it would vest arbitrary powers in the Assessing Officer. We quote hereinbelow the relevant portion of Circular No.549 dated 31st October, 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 received against the omission of the words `reason to believe' from Section 147 and their substitution by the `opinion' of the Assessing Officer. It was pointed out that the meaning of the expression, `reason to believe' had been explained in a number of court rulings in the past and was well settled and its omission from section 147 would give arbitrary p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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