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TMI Blog2021 (8) TMI 829X X X X Extracts X X X X X X X X Extracts X X X X ..... 005-06. The appeal was admitted by a Bench of this Court on the following substantial question of law: "Whether the Tribunal was correct in the facts and circumstances of the case in holding that the reopening of assessment is a mere change of opinion when the Assessing Officer has not recorded finding expressing any opinion on the claim made by the assessee and also as per the provisions of Section 147 of the Act and recorded a perverse finding?" 2. Facts leading to filing of this appeal briefly stated are that the assessee is a company and is engaged in the business of printing currency notes. The assessee filed the return of income for the Assessment Year 2005-06 on 28.10.2005 and declared a total income of Rs. 62,48,47,870/- The ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal before the Tribunal. The Tribunal, by an order dated 15.07.2011, inter alia held that reopening of the assessment under Section 147 read with Section 148 of the Act was on mere change of opinion and held that re-assessment itself was bad in law. Accordingly, the appeal preferred by the assessee was allowed. In the aforesaid factual background, this appeal has been filed. 3. Learned counsel for the revenue submitted that proceedings for re-assessment were initiated under Section 147 of the Act which was in existence at the relevant time and the power under Section 147 could be invoked provided the Assessing Officer had reason to believe that any income chargeable to tax had escaped assessment. It is further submitted that in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing an opinion on the claim is untenable. It is therefore contended that notice issued under Section 148 of the Act and the proceeding initiated pursuant thereto are ab initio void. It is also urged that premium paid on Government of India securities which are held to maturity is to be amortized and therefore, the premium paid on the Government securities is required to be allowed. Even though the same may be under a different head yet it will have any tax impact on the total income. In support of aforesaid submission, reliance has been placed on the decision of the Supreme Court in CIT VS KELVINATOR OF INDIA LTD (2010) 320 ITR 561 (SC), CIT VS KELVINATOR OF INDIA LTD (2002) 256 ITR 1 (DEL), CIT VS USHA INTERNATIONAL LTD (2012) 348 ITR 485 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions are satisfied then the Income Tax Officer would have complete jurisdiction to reopen the original assessment. It is obvious that where the Income Tax Officer gets no subsequent information, but merely proceeds to reopen the original assessment without any fresh facts or materials or without any enquiry into the materials which form part of the original assessment, Section 34(1)(b) would have no application." A Full Bench of this Court in 'DELL INDIA PVT. LTD. Vs. JOINT COMMISSIONER OF INCOME-TAX, BANGALORE' (2021) 123 TAXMANN.COM 468 (KAR) dealt with the question whether 'reason to believe' in the context of Section 147 of the Income Tax Act can be based on mere change of opinion of the Assessing Officer and answered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he original return of income on 28.10.2005, enclosed with it the computation of income along with an annexure indicating computation of net interest received from government securities. The annexure clearly indicated the interest received from investment in government securities viz., Rs. 8,75,99,696/- and premium written off during financial year 2004-05 viz., Rs. 3,84,40,542/-. The aforesaid return was processed under Section 143(1) of the Act on 31.03.2006. The return thereafter was selected for scrutiny and the Assessing Officer passed an original order of assessment dated 27.07.2007. Thus, the details were placed before the Assessing Officer, at the time of original assessment and therefore, it is not possible to infer that the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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