The Tax Publishers2021 TaxPub(DT) 0861 (Mum-Trib)

INCOME TAX ACT, 1961

Section 147

AO in the course of original assessment proceedings had queried as regards impugned issue, and only after being satisfied with reply filed by assessee had accepted the same. Assessee on being queried by AO had duly demonstrated that other income duly formed part of its 'eligible profits' for the purpose of quantification of its deduction under section 80-IB(10). Accordingly, reopening of assessment for action under section 147 on the very same issue was nothing but mere change of opinion by AO, which could not be sustained.

Reassessment - Validity - Change of opinion by AO -

AO reopened assessment on the reasoning that assessee's claim for deduction under section 80-IB(10) in respect of the 'Other income' was not as per the mandate of law. Held: AO in the course of original assessment proceedings had queried as regards impugned issue, and only after being satisfied with reply filed by assessee had accepted the same. Assessee on being queried by AO had duly demonstrated that other income duly formed part of its 'eligible profits' for the purpose of quantification of its deduction under section 80-IB(10). Accordingly, reopening of assessment on the very same issue was nothing but mere change of opinion by AO, which could not be sustained.

Relied:CIT v. Kelvinator of India Ltd. (2010) 320 ITR 561 (SC) : (2010) 187 Taxman 312 (SC) : 3010 TaxPub(DT0 1335 (SC). Supported by:Cartini India Ltd. v. Addl. CIT (2009) 314 ITR 275 (Bom-HC) : 2009 TaxPub(DT) 1584 (Bom-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10



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