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2018 (6) TMI 1326
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....t (the Act). One petition challenges the notice dated 21st March, 2017 seeking to re-open the Assessment Year 2013-14 and the other challenges the notice dated 24th March, 2017 seeking to re-open the assessment for the Assessment Year 2014-15. The regular assessment for the Assessment Year 2013-14 and Assessment Year 2014-15 were completed under Section 143(3) of the Act. Both the impugned notices have been issued within a period of four years from the end of the relevant Assessment Year and therefore not hit by the first proviso to Section 147 of the Act. The reasons in support of both the impugned notices are identical in having proceeded on the basis that deduction in the value of its advances on account of change in the contractual term....
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....n as a deduction was considered during the assessment proceedings and accepted. This is evident from the fact that, the assessment orders for both the years had disallowed some claims made in its computation of income alongwith the subject claim. However, while disallowing some claims in the assessment orders the claim for provision on restructured assets (diminution in fair value thereof) as claimed by the petitioner was not disallowed. On the basis of the above, it is the submission of the petitioners that the Assessing Officer has whilst considering the basic document for assessment viz. computation of income has taken a conscious decision to allow the same, while disallowing some other claims made in the computation of income. Therefore....
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.... that before interference with a proposed reopening of the assessment, the Court should verify whether the assessment order made earlier has expressly or by necessary implication expressed an opinion on a matter which is the basis of the alleged escapement of income that was taxable. Infact, in this case we find that the assessment orders passed in regular assessment proceedings do refer to examining the computation of income filed alongwith the Return of Income. Moreover, the Assessment order in regular assessment proceedings in terms disallowed some of the claims made for deduction under Section 143(3) of the Act. Therefore, in the present facts, we are prima-facie of the view that, the Assessing Officer has by necessary implication allow....
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....satisfied with the basis of the claim as indicated in that very document. Therefore, where he accepts the claim made, the occasion to ask questions on it will not arise nor does it have to be indicated in the order passed in the regular assessment proceedings. Thus, issuing the impugned notices on the above ground would, prima-facie, amount to a change of opinion. 7. The decisions relied upon by the Revenue, prima-facie, are distinguishable and have no application to the present facts. The decision of this Court in Export Credit Guarantee Corporation vs. Additional CIT 350 ITR 651 has no application in the present facts as it proceeded on a finding that the Assessing Officer had overlooked/ignored a particular claim made in the assessmen....
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....law which the Assessing Officer was not earlier conscious, coming to his knowledge subsequently. In the present case, the Revenue suggested at the bar, that the re-opening was done on the basis of assessment order in the subsequent assessment year. However, the reasons in support do not indicate the above assertion of fresh facts or law coming to the knowledge of the Assessing Officer in the subsequent Assessment Year. Further, we are informed that the assessment order for the subsequent Assessment Year taking a fresh view was passed after the impugned notices were issued. Thus, it could not have formed the basis of reasons to believe that income chargeable to tax has escaped assessment. So far as reliance on Southern Technologies (supra) i....
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....at this stage which would indicate that any subsequent information came to the knowledge of the Assessing Officer which warrant the issue of impugned notices. The decision of this Court in Multiscreen Media Private Limited V. Union of India and another (No.2) [2010] 324 ITR 54 (Bom) was again a case where the re-opening notice was issued on obtaining fresh information/material after the passing of an order in the regular assessment proceedings. In this case, admittedly no fresh material/information was obtained by the Assessing Officer as the same does not find a mention in the reasons recorded in support of the impugned notice. Therefore, this is a case of change of opinion. The decision of the Apex Court in Raymond Woollen Mills Ltd. v. I....