TMI Blog2023 (2) TMI 813X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessment order under Section 143(3) of the Act and the date when the reasons were recorded, there has been neither any change in law nor any new material has been shown to have come to the knowledge of the A.O. This therefore is nothing but a clear case of change of opinion. As reasons recorded do not at all alleged any such failure on the part of the assessee which was a condition prerequisite for invoking jurisdiction for reopening in addition to the condition of reasons to believe as this was a case of reopening beyond the period of four years. For the reasons mentioned hereinabove, we have no hesitation in holding that in the facts and circumstances of the present case, the reopening of the assessment is unsustainable. D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 80P of the Act of Rs.13,31,80,877/-. Subsequently, the Petitioner s case was selected for scrutiny and a notice under Section 143(2) was issued. One of the issues flagged during scrutiny was the deduction claimed under Chapter VI-A of the Act by the Petitioner. A notice under Section 142(1) of the Act was issued on 27th September, 2016 asking the Petitioner to inter alia explain with documentary evidence the claim of deduction under Chapter VI-A of the Act. A detail reply was submitted to the said notice vide communication dated 10th October, 2016, wherein it was explained that the Petitioner was not a co-operative bank referred to in Section 80P(4) of the Act and that the Petitioner did fulfll the conditions of eligibility under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvestments with co-operative banks during the financial year relevant to A.Y. 2014-15. Assessee claimed deduction u/s 80P of Rs.92,08,876/- from the interest income so received under the head Business income . The assessee s claim of deduction u/s.80P(2)(a)(i) of the Income Tax Act, 1961, has been allowed in the assessment order u/s, 143(3), dated 23.11.2016. Section 80P(2)(d) of the Income Tax Act, 1961, provides that deductions be allowed to co-op. credit societies in respect of any income derived by way of interest or dividends from its investments with any other co-operative society, the whole of such amount, with the intent to promote co-operative societies. The assessee s claim of deduction u/s. 80P(2)(d) has been allowed which is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he other hand learned Counsel for the Revenue tried to support and buttress the view expressed by the A.O. in the order of assessment impugned in the present petition. It was also urged that there was no jurisdictional error committed by the A.O. in initiating and concluding the reassessment proceedings against the Petitioner, who was erroneously granted the benefit of deduction under Section 80P of the Act, even when it was not entitled to any such benefit. 8. We have heard learned Counsel for the parties. 9. It is no longer res integra that the action of the A.O. in initiating reassessment proceedings have to be tested on the touch stone of the reasons recorded. On a perusal of the reasons recorded as have been reproduced partially ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g but a change of opinion on the part of the A.O. that the benefit of deduction under Section 80P of the Act of Rs.92,08,876/- ought not to have been allowed at all. As between the date of the assessment order under Section 143(3) of the Act and the date when the reasons were recorded, there has been neither any change in law nor any new material has been shown to have come to the knowledge of the A.O.. This therefore is nothing but a clear case of change of opinion as was rightly urged by Mr. Mistry and, therefore, impermissible for reopening the assessment. Apart from this, the assessment is sought to be reopened beyond the period of four years from the end of the relevant assessment year 2014-15 and, therefore, it was incumbent upon the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owhere stated in the reasons recorded that there was failure on the part of the assessee to disclose fully and truly all material facts. Similar facts situation exists even in the present case where the reasons recorded do not at all alleged any such failure on the part of the assessee which was a condition prerequisite for invoking jurisdiction for reopening in addition to the condition of reasons to believe as this was a case of reopening beyond the period of four years. 13. For the reasons mentioned hereinabove, we have no hesitation in holding that in the facts and circumstances of the present case, the reopening of the assessment is unsustainable. Be that as it may, the present petition is allowed. The notice under Section 148 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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