2021 (7) TMI 364

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....both the parties. Case files perused. 2. Coming to the Revenue's appeal 1744/Hyd/2018 challenging correctness of the order of the CIT(A)'s order terming the impugned reopening as not sustainable in law, both the learned representatives took us to the lower appellate findings reading as under: 2. The appellant company filed its return of income for the assessment year 2010-11 on 14.10.2010 disclosing taxable income of Rs. 9,65,240/-. The regular assessment was completed u/s. 143(3) after calling for details and after scrutinizing all the details required on 28.03.2013. The AO made certain additions and determined the income at Rs. 19,25,903/-. The AO later initiated proceedings u/s. 147 to bring short accountal of closing....

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....he facts of the case and decisions mentioned above, I am of the view that the AO had completed the original assessment u/s. 143(3) of the Act, after considering all the materials submitted by the assessee. Later, the AO reopened the assessment u/s. 147 relying on the same materials submitted by the assessee during the original assessment passed u/s. 143(3) of the Act. There was no fresh material or any information which gives the impression that the income of the assessee has escaped assessment. The initiation of reassessment proceedings u/s. 147 of the Act, on the basis of the same material on record and holding that there was escapement of income on short accountal of closing stock by reconciliation of Trading account and details of sales....

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....iso. We therefore hold this factual backdrop the CIT(A) has rightly termed the impugned reassessment as a mere change of opinion as per hon'ble apex court land mark decision in CIT Vs. Kelvinator of India Ltd. (supra). We further wish to quote hon'ble Bombay High Court decision in Hindustan Lever Ltd. Vs. ACIT 268 ITR 332 (Bom) that the reasons recorded by the Assessing Officer must state that there was failure on the part of the assessee to disclose fully and truly all material facts. It is needless to mention that the reasons are required to be read as they were recorded by the Assessing Officer. And that the Assessing Officer himself must also speak through his reasons and should not keep and also seek through his reasons and sho....