Rajeswar Thakur Vs ACIT (ITAT Cuttack)
ITAT Cuttack held that reassessment proceedings cannot be sustained since issue already considered during original assessment by AO and hence reopening amounts to change of opinion. Accordingly, order quashed.
Facts- Assessee has preferred the present appeal mainly contesting that the reopening was in fact challenge to the agriculture income declared by the assessee. It was the submission that the reopening was based on change of opinion. The Assessing Officer in the original proceedings had considered the agricultural income of the assessee. The explanation of the assessee had been called for and the same have been accepted. The reopening consequently was clearly based on a change of opinion and no fresh evidence had come to the attention of the AO or in the possession of the Assessing Officer which could lead the Assessing Officer to have any reason to reopen the assessment.
Conclusion- Held that the reopening in respect of agricultural income mentioning that the assessee has not shown the quantity of the crops produced, and to whom sold, sale purchase registers, bills and vouchers, ledger account, are nothing but afterthought, especially when in the course of original assessment the AO has categorically admitted that the agricultural income is from the sale of eucalyptus trees, the amount has been received by cash as well as cheque. Thus, clearly the reopening of the assessment as proposed is nothing but a change of opinion. There is no failure on the part of the assessee to disclose fully and truly all material facts when the original assessment was completed. This being so, we are of the view that the reopening as done by the AO and upheld by the ld. CIT(A) is unsustainable and consequently we quash the same and the consequential assessment order stands quashed. Thus, the appeal of the assessee is allowed.
