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of <h1>ITAT upholds CIT(A)'s decision canceling reassessment proceedings under Section 147.</h1> <h3>DCIT, Circle 9(1), New Delhi Versus M/s. Indian Iron & Steel Co. Ltd.. (merged with Steel Authority of India Ltd.)</h3> DCIT, Circle 9(1), New Delhi Versus M/s. Indian Iron & Steel Co. Ltd.. (merged with Steel Authority of India Ltd.) - TMI Issues involved:Appeal against order canceling reassessment proceedings under section 147 of the I.T. Act on the ground of change of opinion.Detailed Analysis:1. Reassessment Proceedings Initiated: The Revenue's appeal challenged the order canceling reassessment proceedings under section 147 of the I.T. Act, based on the ground of change of opinion. The original assessment was completed under section 143(3) on 31-12-2007, and subsequently, the assessing officer reopened the assessment under section 147 and made additions.2. Validity of Reopening: The assessee contended that the issue of wage revision (arrears) was duly considered during the original assessment, with specific queries and explanations provided by the assessee. The assessing officer, after considering the explanations, allowed the claim during the regular assessment under section 143(3). Subsequently, when rectification proceedings were initiated based on an audit objection, the assessing officer dropped the proceedings after considering the assessee's objections.3. Reopening on Change of Opinion: The assessing officer reopened the assessment under section 147 without valid reasons, merely to align with the audit objection, which was not a sufficient ground for reassessment. The CIT(A) held the reassessment to be bad in law, citing the Supreme Court judgment in the case of Kelvinator India Ltd. The reassessment cannot be made solely on the basis of a change in opinion, as confirmed by the CIT(A) based on the facts and legal principles involved.4. Judgment and Dismissal of Appeal: The ITAT upheld the CIT(A)'s decision, dismissing the revenue's appeal. The ITAT found no infirmity in the CIT(A)'s order, as the reassessment was deemed improper due to the lack of valid reasons for reopening the assessment under section 147. The order was pronounced on 18-6-2014, confirming the dismissal of the revenue's appeal.This detailed analysis highlights the key aspects of the legal judgment, focusing on the validity of reassessment proceedings, the grounds for reopening assessments, and the application of legal principles to determine the lawfulness of the reassessment in question.
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