TaxTMI 
TaxTMI 
2020 (2) TMI 1354
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....referring to Ground No. 1 of appeal submitted that the assessment was reopened on the basis of change of opinion without any new tangible material in the hands of the AO, hence, it should be quashed. Ld. A.R. submitted that firstly ground No. 1 of appeal may be adjudicated. 4. Ld. D.R. fairly agrees to the contention of Ld. A.R. of the assessee to adjudicate Ground No. 1 of appeal. 5. Ld. A.R. submitted that no assessment was made u/s. 143(3) of the Act. However, a notice u/s. 148 on 14.3.2014 was issued to the assessee to reopen the assessment stating the reasons as under: "Sub: Reason for reopening u/s. 147 of the I.T. Act, 1961 for the A.Y. 2009-2010-Reg I am furnishing herewith the reason for reopening u/s. 147 o....
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....itted that the assessee had not made any excess investment of Rs. 7,00,000/- in the assessment year 2009-10; a piece of land was purchased at a consideration of Rs. 53,400/- from the past savings and the assessee had paid Rs. 2,50,109/- as an interest on borrowed capital (HBL). The Assessing Officer, however, was not impressed. He rejected the submissions of the assessee and passed reassessment order under section 147/143(3) of the Act on 25.8.2014, inter alia, disallowing various disallowances. 7. Aggrieved, assessee carried the matter in appeal before the CIT(A) and made elaborate submissions, on legal and factual aspects, against validity of validity of notice u/s. 148 and reassessment proceedings u/s. 147, but without any success. Th....
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....hat the reasons recorded by the assessing officer do not even indicate or allege that any fresh information came to the knowledge of the assessing officer warranting exercise of jurisdiction under section 147/148 of the Act. On the basis of, inter alia, these submissions, he urged the Bench to quash the reassessment proceedings. Ld. counsel also relied on the decision of Hon'ble Supreme Court in the case of CIT v. Kelvinator of India Ltd. 320 ITR 561 (SC). 10. Replying to above, Learned Departmental Representative submitted that when the Assessing Officer did not apply his mind at all on the information before him in the original assessment proceedings, there is no question of fresh application of mind. He submitted that there was au....
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.... Assessing Officer has reason to believe that income has escaped assessment, confers jurisdiction to reopen the assessment. Therefore, post-1st April, 1989, power to re-open is much wider. However, one needs to give a schematic interpretation to the words "reason to believe" failing which, we are afraid, Section 147 would give arbitrary powers to the Assessing Officer to re-open assessments on the basis of "mere change of opinion", which cannot be per se reason to re-open. We must also keep in mind the conceptual difference between power to review and power to re-assess. The Assessing Officer has no power to review; he has the power to reassess. But reassessment has to be based on fulfillment of certain precondition and if the concept of "c....