2024 (2) TMI 1600

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.... on the ground of change of opinion when no opinion was formed by the AO on the issue of re-computation of the deduction u/s 36(1)(viii) of the Act after reducing the deduction u/s. 36(1)(viia) of the Act from the proportionate profit from long term activity during the original assessment proceeding? 2. "The Ld. CIT (A) erred in not appreciating the ratio of the Delhi High Court in the case of M/s. Consolidated Photo & Finvest Ltd. Vs. ACIT (2006) 151 Taxman 41 (Delhi) wherein it is held that action under section 147 was permissible even if the Assessing Officer gathered his reasons to believe from the very same record as had been the subject matter of completed assessment proceeding? 3. the appellant craves leave to add, amend and/ or ....

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....e reply of the assessee and finally reassessed the income of the assessee u/s. 143(3) of the Act r.w.s. 147 of the Act. The Assessee was aggrieved with the same order and preferred an appeal before the Ld. CIT (A), who in turn declared the assessment as bad in law and quashed the proceedings carried out in response to notice issued u/s. 148 of the Act. Now, revenue is not satisfied with the order of Ld. CIT (A) and preferred this present appeal before us. 6. We carefully considered the order of AO passed u/s. 143(3) of the Act, Reasons taken for reopening of the case, objections of the assessee against reopening and AO's disposal of the same, order of the AO passed u/s. 143(3) r.w.s. 147 of the Act and order of the Ld.CIT (A) passed u/s. 2....

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....ill undergo a change and hence the deduction u/s. 36(1)(vii) as well as 36(1)(viia)(c) allowable to the assessee are re-worked and allowed accordingly." 3. Therefore, in view of the above, it is clear that the aforesaid issue was already dealt by the AO during the course of original assessment proceedings u/s 143(3) of the Act. There had been full and true disclosure of all material facts during the course of the assessment proceedings itself. Thus, reopening the said case on same facts is nothing but a mere change of opinion. It is now a well decided judicial pronouncement that no reopening is possible on the basis of change of opinion. Copies of following decisions were provided during the course of hearing: * Hon'ble Supreme Cour....

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....C decision of ALA Firm vs. CIT (Civil No. 570 of 1976). In this regard, it is submitted that the SC was dealing with the assessment year is 1961-62. Subsequent to the said decision, there are a plethora of decision passed subsequently, wherein it is clearly emerging from the reasons so recorded by the Assessing officer which establishes the fact that there is no new material brought on record by the Assessing subsequent to completion of original proceedings u/s. 143(3) and the matter was duly examined during the original assessment proceedings and it is therefore clearly a case of change of opinion where on the same facts and material on record, the Assessing officer wishes to take a different view than the view taken earlier and a mere cha....