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TMI Blog2023 (11) TMI 868X X X X Extracts X X X X X X X X Extracts X X X X ..... with. 2. Petitioner had filed its return of income for Assessment Year 2014-15 on 29th November 2014. It was processed and intimation under Section 143(1) of the Income Tax Act, 1961 ("the Act") was issued. Subsequently, Petitioner's case was selected for scrutiny assessment. Petitioner was called upon to file several details pertaining to Petitioner's claim for deductions under Section 32AC of the Act. These include details of the installation of the machinery with respect to which a claim for deduction was made. Details of money borrowed, interest paid, etc. was also called for. All details were made available along with Auditor's Certification for the purpose of calculation of allowance under Section 32AC of the Act. 3. The assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erein. The proviso to Section 147 of the Act states that where an assessment order under Section 143(3) has been passed and more than four years had expired from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of assessee to disclose fully and truly all material facts necessary for assessment for that assessment year, reopening of assessment was not permissible. 7. In this case, an assessment order under Section 143(3) of the Act has been passed and more than four years have expired from the end of the relevant year. Therefore, the proviso to Section 147 applies. 8. The reasons given to reopen assessment read as under: "2. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This resulted in underassessment of income of Rs. 20,91,45,934/-." 9. There is not even a hint in the reasons to reopen, that there has been a failure to truly and fully disclose. The reason itself indicates that everything has been disclosed because it reads "...... on perusal of the records it was observed that the assessee was allowed the deduction of Rs. 20,91,45,934/- under Section 32AC. The assessee contended that for the purpose of calculation of allowance...... it was seen that the addition to fixed assets in Note 11 of the annual account for the relevant period ..... the allowance of deduction was not in order." 10. Moreover, during the course of assessment proceedings, Petitioner was told to provide detailed break-up of vario ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication and/or reasons to believe that income chargeable to tax has escaped assessment. 13. Mr. Sharma submitted that an audit query was raised and there was misapplication of provision of Section 32AC of the Act. However, the Assessing Officer himself has replied to the audit objection raised denying that there was any escapement of income. In fact, in the letter dated 4th March 2021 a copy whereof is annexed to the Petition it is stated "audit objection/observation is not acceptable to the Department" 14. When the primary facts necessary for assessment are fully and truly disclosed, the Assessing Officer is not entitled on change of opinion to commence proceedings for reassessment. Even if the Assessing Officer, who passed the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... audit objections but on second thought, to the objections from the auditors he has re-opened the assessment. In our view, re-opening of the assessment without any basis and merely change of opinion is not permissible while exercising the powers under Section 147 read with Section 148 of the Act." 16. Where on consideration of material on record, one view is conclusively taken by the Assessing Officer, it is not open to reopen the assessment based on the very same material with a view to take another view. (Ananta Landmark Pvt. Ltd. v. DCIT, Central Circle 5(3), Mumbai (2021) 131 taxmann.com 52 (Bombay). 17. In the circumstances, Rule made absolute in terms of prayer clause (a) which reads as under: "(a) this Hon'ble Court may be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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