TaxTMI 
TaxTMI 
2012 (8) TMI 267
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....tax Officer in re-opening the assessment under section 148 of the Act without appreciating that the assessment could not be reopened merely on the basis of change of opinion on the same set of facts. II. Without prejudice to Ground No. I above, and in the alternative, the Commissioner of Income-tax (Appeals) erred in upholding the action of the Income-tax Officer in disallowing an amount of Rs.54,41,071/- being provision for quality claims received from customers by treating the same as an unascertained liability." 3. Ground No. 1 is legal, on the issue of reopening of assessment u/s 148 by the AO. To deal with the issue of reopening, we have to take into account the factual aspects, starting from the filing of the return. The assessee fi....
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....ealt with by the AO framing the regular assessment dated 28-02-2006 and submissions made on the issue by the assessee in its written submissions on the dates as mentioned above. 9. The A.R. pointed at page No. 5, which pertained to the reply given by the AO on the request of for the reasons. The reasons recorded by the AO read as under: "Assessment u/s. l43 (3) was completed on 28/2/2006 and income assessed was Rs. 4,13,875/-. After verification of case records, it is seen that assessee has debited to profit and loss account Rs. 54,41,071/- under the head "Claim". As per the ledger of claim account, Rs. 54,41,071/- is a provision for customers claim. Assessee has debited Rs. 5,27,621/- towards provision for customer's claim in respect of....
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....how it has been dealt with by the AO and the assessee at the regular assessment stage, the A.R. emphasised that it is a clear case of "change of opinion" on the already dealt with issue by the succeeding AO. The A.R. submitted that the issue is now covered by the Hon'ble Supreme Court in the case of CIT v/s Kelvinator of India Ltd. reported in 320 ITR 561, wherein the Hon'ble Supreme Court (Headnote) held as under: "The concept of "change of opinion" on the part of the Assessing Officer to reopen an assessment does not stand obliterated after the substitution of section 147 of the Income-tax Act, 1961, by the Direct Tax Laws (Amendment) Acts, 1987 and 1989. After the amendment, the Assessing Officer has to have reason to believe that incom....