2023 (6) TMI 1269

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....AO] u/s. 143 r.w.s. 147 of the Act on 16-12-2016. The grounds taken by the Revenue read as under: - "1. The order of the Id. CIT(A), Coimbatore is against the facts and circumstances of the case and is erroneous by law. 2. The learned CIT(A) ought to have appreciated that reassessment is permissible even if the information was obtained after proper investigation from the material on record or from any enquiry or research into facts or law - information need not be from an external source as held by the Hon'ble Supreme Court in the case of Kalyanji Mavji & Co. vs. CIT(SC) 102 ITR 287. 3. The learned CIT(A) ought to have appreciated that change of opinion comes to the rescue of the assessee only when the Assessi....

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.... advance towards purchase of land. This amount was claimed as bad-debts. Since it was capital expenditure and wrongly allowed as revenue expenditure, the case was reopened. The assessee opposed reopening on the ground that AO had already verified the claim and reopening was without any tangible and new material. The reopening tantamount to review of existing available material and on mere change of opinion. The Ld. AO rejected the same on the ground that the said claim was not expressly allowed and the issue was not discussed in the assessment order. Only part of the claim was discussed and disallowed which was upheld by first appellate authority. As per Explanation 2(c)(iii) to Sec. 147, it would be case of deemed escapement where an asses....

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....hat action of AO was nothing but a change of opinion and reappraisal of the already available facts. Therefore, the assessment was held to be invalid and finally cancelled. Aggrieved, the revenue is in further appeal before us. 4. From the fact, it emerges that the assessee has debited bad debts written off for Rs. 641.77 Lacs in the Profit & Loss Account. The details of the same were called for by Ld. AO during the course of original assessment proceedings. The assessee had supplied the requisite details. After considering the assessee's reply, Ld. AO disallowed bad debts to the extent of Rs. 204.26 Lacs and chose not to make any further addition on this account. There is no further discussion whatsoever in the assessment order, in this....