2023 (6) TMI 1269

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....-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 Assessing Officer has taken one of the permissible views at the time of....

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....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 assessment was made and income was subject to excessive relief under the act. According....