Tribunal rules against Revenue's appeal for 2002-03, orders fresh assessment for 2007-08, assessees' claims allowed.

The Tribunal dismissed the Revenue's appeal for the assessment year 2002-03, as the reopening of assessment was deemed based on a change of opinion, which was not permissible. For the assessment year 2007-08, the Tribunal set aside the Ld. CIT(A)'s decision to delete additions made on recalculated sales, directing the AO to conduct a fresh assessment. The assessee was instructed to provide necessary details and evidence to support their claims. The Tribunal treated the appeal for 2007-08 as allowed for statistical purposes and allowed the assessee's cross objections for statistical purposes as well.

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Issues Involved:
1. Reopening of assessment based on change of opinion for assessment year 2002-03.
2. Deletion of additions made on account of recalculated sales for assessment year 2007-08.

Issue 1: Reopening of assessment based on change of opinion for assessment year 2002-03:
The Revenue appealed against the Ld. CIT(A)'s decision regarding the reopening of the assessment for the year 2002-03. The Revenue contended that the AO's reopening of the assessment was challenged as being based on a change of opinion and hence not valid. The AO had reopened the assessment due to discrepancies in the reported income related to royalty payments and sales figures. The Ld. CIT(A) held that since all necessary details were already provided during the original assessment, there was no failure on the part of the assessee to disclose relevant material facts. The Ld. CIT(A) concluded that the reopening was indeed based on a change of opinion, which was not permissible. The Revenue further argued that the AO did not form any new opinion based on additional evidence. However, the Tribunal found that all relevant details, including break-up of sales and royalty agreements, were already submitted during the original assessment. Therefore, the Tribunal upheld the Ld. CIT(A)'s decision, dismissing the Revenue's appeal.

Issue 2: Deletion of additions made on account of recalculated sales for assessment year 2007-08:
In the appeal for the assessment year 2007-08, the Revenue challenged the deletion of additions made on account of recalculated sales. The AO recalculated the sales based on royalty payments, adding a significant amount as suppressed sales. The assessee argued that the sales could not be estimated accurately due to the lack of a direct link between sales in India and royalty payments to a US-based company. The Ld. CIT(A) found no evidence of unaccounted sales and deleted the additions. The Revenue contended that the assessee failed to provide details supporting discounted sales prices. The Tribunal observed that no evidence was presented to show sales at discounted prices or a lack of nexus between sales in India and royalty payments. As a result, the Tribunal set aside the Ld. CIT(A)'s decision and directed the AO to conduct a fresh assessment. The assessee was instructed to provide necessary details and evidence to justify their claims, and the AO was tasked with verifying these submissions before making a new decision.

In conclusion, the Tribunal dismissed the Revenue's appeal for the assessment year 2002-03 and treated the appeal for the assessment year 2007-08 as allowed for statistical purposes. The Cross objections filed by the assessee were also allowed for statistical purposes.

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