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The Tax Publishers2012 TaxPub(DT) 0241 (Del-HC) : (2012) 043 (I) ITCL 0190 : (2012) 340 ITR 0570 : (2012) 205 TAXMAN 0186 INCOME TAX ACT, 1961 --Reassessment--Change of opinionDeduction under section 80HHC and 80-IA allowed after due inquiry in assessment proceedings--For the relevant assessment year scrutiny notice under section 143(2) was issued and during the course of the regular assessment proceedings a questionnaire was written to the assessee. In the said questionnnaire the assessee was asked to justify the claim for deduction under section 80HHC and 80-IA. After considering the reply furnished by the assessee, assessment order was passed accepting the returned income as declared. AO issued notice under section 148 after recording reasons for reopening. The Tribunal has struck down the said reassessment proceedings on the ground that the jurisdictional pre-conditions stipulated in section 147 were not satisfied, as it was a case of reopening on change of opinion. The deductions and quantification thereof under section 80HHC/80IA were specifically examined at the time of original assessment proceedings. Held: The question of deductions under section 80IA and 80HHC were specifically examined at the time of original assessment proceedings. The assessee had justified the claim and furnished documentary evidence or proof. The quantification of the claim was justified. This is a case of change of opinion and this is not permissible. The opinion of the AO may have been legally erroneous but this cannot be a ground for initiation of re-assessment proceedings. An erroneous decision which is prejudicial to the revenue can be revised but the said option was not exercised. Income Tax Act, 1961 Section 147 IN THE DELHI HIGH COURT SANJIV KHANNA & R.V. EASWAR, JJ. CIT v. Raj Kumar Mahajan ITA 683/2011 A.Y. 2001-02 4 January, 2012 Appellant by : Sanjeev Rajpal, Advocate, Respondent by : Ajay Vohra, Kavita Jha & Mr. Somnath Shukla, Advocates, JUDGMENT The present appeal filed by the revenue under section 260A of the Income Tax Act, 1961 (Act) impugns order dated 21-6-2010 passed by the Income Tax Appellate Tribunal (Tribunal) which relates to the assessment year 2001-02. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2012 TaxPub(DT) 0241 (Del-HC) : (2012) 043 (I) ITCL 0190 : (2012) 340 ITR 0570 : (2012) 205 TAXMAN 0186

INCOME TAX ACT, 1961

--Reassessment--Change of opinionDeduction under section 80HHC and 80-IA allowed after due inquiry in assessment proceedings--For the relevant assessment year scrutiny notice under section 143(2) was issued and during the course of the regular assessment proceedings a questionnaire was written to the assessee. In the said questionnnaire the assessee was asked to justify the claim for deduction under section 80HHC and 80-IA. After considering the reply furnished by the assessee, assessment order was passed accepting the returned income as declared. AO issued notice under section 148 after recording reasons for reopening. The Tribunal has struck down the said reassessment proceedings on the ground that the jurisdictional pre-conditions stipulated in section 147 were not satisfied, as it was a case of reopening on change of opinion. The deductions and quantification thereof under section 80HHC/80IA were specifically examined at the time of original assessment proceedings. Held: The question of deductions under section 80IA and 80HHC were specifically examined at the time of original assessment proceedings. The assessee had justified the claim and furnished documentary evidence or proof. The quantification of the claim was justified. This is a case of change of opinion and this is not permissible. The opinion of the AO may have been legally erroneous but this cannot be a ground for initiation of re-assessment proceedings. An erroneous decision which is prejudicial to the revenue can be revised but the said option was not exercised.

Income Tax Act, 1961 Section 147

IN THE DELHI HIGH COURT

SANJIV KHANNA & R.V. EASWAR, JJ.

CIT v. Raj Kumar Mahajan

ITA 683/2011

A.Y. 2001-02

4 January, 2012

Appellant by : Sanjeev Rajpal, Advocate,

Respondent by : Ajay Vohra, Kavita Jha & Mr. Somnath Shukla, Advocates,

JUDGMENT

The present appeal filed by the revenue under section 260A of the Income Tax Act, 1961 (Act) impugns order dated 21-6-2010 passed by the Income Tax Appellate Tribunal (Tribunal) which relates to the assessment year 2001-02.