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of <h1>ITAT dismisses Revenue's appeals, upholds CIT(A) orders for assessment years 2007-08 & 2008-09</h1> <h3>A.C.I.T., Central Circle-II, Lucknow. Versus M/s Jai Prakash Associates ltd.</h3> A.C.I.T., Central Circle-II, Lucknow. Versus M/s Jai Prakash Associates ltd. - TMI Issues:Appeals filed by Revenue against CIT(A) orders for assessment years 2007-08 & 2008-09.Analysis:1. Issue 1 - Reopening of Assessment under Section 147 of the Income Tax Act 1961:- The Revenue contended that CIT(A) erred in quashing the proceedings u/s 147 without fresh material, stating all conditions for reopening were met.- CIT(A) observed the reasons recorded were a mere change of opinion, not considering the detection of undue deduction claim.- CIT(A) relied on her own judgment for A.Y. 2009-10, which was under further appeal.- The Revenue argued CIT(A) failed to adjudicate on additions made by the Assessing Officer.2. Issue 2 - Merits of the Assessment Orders:- The Revenue argued that CIT(A) did not address the various additions made by the Assessing Officer in the assessment orders.- The Revenue sought vacating of CIT(A) order and restoration of the assessment order by the A.O.3. Detailed Analysis:- The CIT(A) noted the case was taken up for scrutiny, with specific queries raised by the Assessing Officer regarding deduction claimed under section 80IA.- The Assessing Officer accepted the claim during the original assessment proceedings under section 143(3) of the Act.- Reasons for reopening under section 148 were based on disallowance of deduction for A.Y. 2009-10, without mentioning income escaping assessment.- The CIT(A) found the reopening was a mere change of opinion without new material, citing the judgment in CIT vs. Kelvinator of India Ltd.- The judgment emphasized that reopening on a mere change of opinion without fresh material is impermissible, unless the disallowance in a subsequent year is based on relevant new material.- As there was no mention of fresh material in the reasons recorded by the A.O., the reopening was deemed impermissible.- Both sides agreed that the facts for A.Y. 2007-08 were identical to A.Y. 2008-09, leading to the dismissal of both appeals by the Revenue.In conclusion, the ITAT Lucknow dismissed both appeals by the Revenue, upholding the CIT(A) orders for assessment years 2007-08 & 2008-09. The judgment highlighted the importance of fresh material for reopening assessments and emphasized that a mere change of opinion without new relevant material is impermissible under the law.
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