2015 (3) TMI 635

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....erused the record. The facts that emerge from the record are that the assessment in the hands of the assessee for the assessment year under consideration was completed u/s 143(3) of the Income Tax Act, 1961(the Act) on 23.12.2008. Subsequently, the AO reopened the assessment by issuing show cause notice u/s 148 on 30.3.2011 i.e. within the four years from the end of relevant assessment year. The reasons recorded by the AO for reopening of the assessment are extracted in the assessment order itself and the same is reproduced below:- "Return of income for the AY 2006-07 was furnished on 01.12.2006 declaring total loss of Rs. 25,03,670/-. Assessment u/s. 243(3,) was completed on 23.12.2008 assessing the total loss at Rs. 25,03,670/-. On peru....

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....he ld. CIT(A) was convinced with the contentions of the assessee and accordingly held that the reopening of the assessment was bad in law. The relevant observations of the ld. CIT(A) are extracted below : "4.5. Having considered the AO's order as well as the appellant AR's submission, I find that the reopening of the assessment by the AO was not correct on two fold, first that the information which was the basis of reopening of the assessment was already available on record. It is evident that that the reasons recorded by the AO which takes note of the appellant's original return of income which was filed and its balance sheet and tax audit report was already available on record as it was filed as on 01/12/2006 with original re....

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....ourt following the apex Court in the matter of Cartini india ltd. v. Addl. CIT reported in 314 ITR 275 has also held that even where assessment is ought to be done within four years from the end of the relevant assessment year, there must be reason to believe that income has escaped assessment and such reason to believe should not be on account of mere change of opinion. Therefore, where facts have been viewed during the original proceeding and an assessment order has been passed then in such cases, reopening of an assessment on the same facts without anything more would be a review and not permitted under the garb of reassessment. This would be a mere change of opinion in the absence of any tangible material and is not sufficient to assume....

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....Ltd in ITA No.2026 of 2010 dated 21.7.2012 to contend that non consideration of claim for any deduction in the original assessment proceedings cannot be lead to an inference that there was a change of opinion during the reassessment proceedings. The ld. DR further submitted that the ld. CIT(A) has decided this issue in favour of the assessee by following the decision rendered by the jurisdictional High Court in Purity Techtextile Pvt. Ltd V/s. ACIT reported in 325 ITR 459. The ld. DR, inviting our attention to para 15 of the said order, submitted that the Hon'ble Jurisdictional High Court has decided the issue in the above said case on the basis of the facts prevailing in that case. 7 However, various case laws relied upon by the ld. DR, i....