TaxTMI 
TaxTMI 
2014 (4) TMI 25
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....and in the circumstances of the case, the ld. CIT(A) has erred in holding the reopening of assessment as bad in law and consequently the assessment order based on such reopening was also held to be bad in law." 3. Briefly stated the facts giving rise to this appeal are that the assessment u/s 143(3) of the Income Tax Act, 1961 was completed vide order dated 15.3.2005 determining total income of the assessee at Rs.17,27,03,290. Subsequently, the assessment was reopened u/s 147 of the Act by issuing notice u/s 148 of the Act dated 28.3.2008. The Assessing Officer provided reasons recorded to the assessee vide letter dated 12.09.2008. During the reassessment proceedings, the Assessing Officer asked for details and explanation in respect of ....
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....d circumstances, we hold that the reopening of assessment u/s 147 and 148 of the Act is not permissible beyond four years of limitation as per provisions of the Act. 8. From the impugned order, we observe that the Commissioner of Income Tax(A) in para 2.3 has held that the reopening of completed assessment on the issue of testing and coordination charges and third party inspection charges and accreditation charges was only on change of opinion on these issues by the subsequent Assessing Officer because these issues were already examined and looked into by the Assessing Officer who completed the original assessment u/s 143(3) of the Act and, therefore, the belief formed by subsequent Assessing Officer on these two issues was nothing but m....
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....uch information/material, any attempt to reopen the completed assessment on that basis will amount to change of opinion which is not permissible under the Act. There are number of decisions including the Hon'ble Supreme Court decision in the case of Kelvinator of India Ltd. (Supra) that reopening of assessment on the basis of change of opinion is not permissible under the Act and is bad in law. The Hon'ble Supreme Court also held that the reopening on the basis of change of opinion even within four years from the end of the relevant assessment year is also not permissible under the law. During appellate proceedings, the appellant has filed a copy of questionnaire dtd.27.10.2004 issued by A.O. i.e. Addl. CIT Range 10(2), Mumbai. T....
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....the A.O. incorrectly accepted appellant's claim on these two issues or did not examine the aspect of withholding of tax thereon during original assessment proceedings. Therefore, it cannot be said that the A.O. committed some mistake during original assessment proceedings. Without prejudice to this argument, for the sake of discussion even if it is argued that during original assessment proceedings, the A.O. committed some mistake on these issues, such mistake was required to be taken care of by initiating proceedings u/s. 263 of the Act and not u/s. 147 of the Act. In view of the above discussion, it is held that the reopening of the completed assessment on the issues of "testing and coordination charges" and "third party inspection....
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....sidered by the Assessing Officer during the original assessment proceedings and the assessee submitted detailed explanation on 30.11.2004 in this regard before the Assessing Officer. The relevant explanation of the assessee before the Assessing Officer during the original assessment proceedings is available on Paper Book page no. 135 to 137. Thus, we clearly observe that the Assessing Officer considered and adjudicated both the issues during the original assessment proceedings and reopening of assessment on same issues certainly amounts to change of opinion which is not permissible as per provisions of the Act and law. Accordingly, we hold that the CIT(A) rightly decided the issue in favour of the assessee by holding that the reopening of a....