Tribunals
Summary and Review of Case Laws Decided by Income Tax Appellate Tribunals
Thursday, 30 July 2015 15:44

Reassessment u/s 147 quashed - Ahmedabad Tribunal Featured

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Gist

Reopening of assessment can not be done merely on the ground that from the material available, the view earlier adopted by AO was erroneous one. Thus, such fact cannot be a ground for reassessment

Facts

  1. Assessee’s case was reopened and reassessment u/s 243(3) r.w.s. 147 was framed
  2. CIT(A) did not decide validity of reassessment
  3. Reassessment was quashed by the Honb. Tribunal being invalid

Adjudication

In view of the binding precedent, we are of the considered view that it is not the case where the material was not available with the AO and AO has not applied his mind in the case under appeal. Therefore, we hold that the reopening of the assessment is made on the basis of change of opinion only as the ld.counsel for the assessee has demonstrated from the records that all information/details were available with the AO and the AO has applied his mind on the allowability of deduction u/s.80HHC and computation of book profit. Therefore, order under appeal is set aside and assessment framed u/s.143(3) read with section 147 is quashed being invalid.

Cases referred to

P.V. Doshi vs. CIT reported at (1978)113 ITR 22 (Guj.)
Rajesh Babubhai Damania vs. ITO reported at (2012)122 Taxman 614 (Guj.)
Starchik Specialties Ltd. vs. DCIT 90 ITD 34
CIT vs. GTN Textiles Limited 248 ITR 372
Goetze (India) Ltd. vs. CIT (284 ITR 323)
CIT vs. Bhanji Lavaji reported at (1971)79 ITR 582(SC)
Hynoup Food & Oil Industries Ltd. vs. Asstt.CIT reported at (2008) 219 CTR 124(Guj.)
CIT vs. Kelvinator reported at 187 Taxman 312 (SC)
CIT vs. Kelvirator of India Lid. [2010] 320 1TR 561 :: 187 Taxman 312

Additional Info

Read 12915 times Last modified on Saturday, 13 February 2016 17:05
Amit

Amit is a Chartered Accountant and a part of Taxpundit's Support Team. He has experience in various industry sectors including manufacturing, power and utilities, financial services, alternative investments etc. He is a passionate blogger and keep writing articles on Income Tax for various publications.

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