Tribunal quashes reassessment, deems it unsustainable due to lack of new material. Assessing Officer's reasons inadequate.

The Tribunal quashed the reassessment completed under section 143(3)/147 of the Act, as it was based on a change of opinion without new material, rendering it unsustainable. The Assessing Officer's reasons for reopening the assessment were deemed inadequate, and objections raised by the assessee were not addressed, making the reassessment unlawful. Given that all necessary details were provided during the original assessment and previous assessments allowed the claim u/s 10A, the reassessment was unjustified. Consequently, the order of the CIT(A) was set aside, and the appeal of the assessee was allowed.

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Issues:
Challenging confirmation of reassessment u/s 147 of the Act.

Analysis:
The appellant contested the reassessment made under section 147 of the Act, arguing that the Assessing Officer reopened the assessment without any new material indicating income escapement. During the original assessment, all details regarding the claim of exemption u/s 10A of the Act were furnished by the assessee. The appellant objected to the reasons recorded for reopening the assessment, emphasizing that the Assessing Officer merely changed opinion without valid grounds. The Tribunal noted that the Assessing Officer's reasons for reopening the assessment were based on an alleged irregular claim of deduction/exemption u/s 10A, without any new material. It was established that the assessment was reopened solely on a change of opinion, rendering it unsustainable in law. The Tribunal further highlighted that objections raised by the assessee were not addressed by the Assessing Officer before proceeding with the reassessment, which was deemed unlawful. Given that all necessary details were provided during the original assessment and previous assessments allowed the claim u/s 10A, the reassessment was deemed unjustified. Consequently, the reassessment completed under section 143(3)/147 of the Act was quashed, and the order of the CIT(A) was set aside, allowing Ground Nos.1 to 3 raised by the assessee.

Additional Points:
Ground No.4, concerning the merits of the case, became irrelevant following the decision on the reassessment issue. As a result, it required no further consideration. Ground No.5 was not pursued by the assessee. Ultimately, the appeal of the assessee was allowed by the Tribunal, with the order pronounced in open court on 07.08.2019.

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