Brief of the case:
The ITAT Ahmedabad in the case of Parul Bhupendra Patel vs. ITO held that reopening of the assessment on the basis of doubting certain information filed in the return of income and reopening assessment on that basis is not valid in law as AO had not obtained any new tangible material to believe that income had escaped assessment.
Facts of the case:
- Assessee individual having income from tuitions and other sources filed her return of income for A.Y. 08-09 on 21.03.2007 declaring total income of Rs. 1,44,954/-. The return of income was initially processed u/s. 143(1) of the Act. Subsequently notice u/s. 148 of the Act was issued on 30th March, 2013 and the case was reopened and thereafter the assessment was framed u/s. 143(3) read with section. 147 where the total income was assessed at Rs. 3,44,950/-.
- CIT (A) also dismissed the appeal of assessee. Aggrieved by that, assessee is now in appeal before tribunal.
Contention of the Assessee:
The reopening has been made on the basis of material which was already available on record of A.O and was not based on any new tangible material obtained by AO. The learned counsel for the assessee relied on the decision of Hon’ble Apex Court in the case of CIT vs. Kelvinator India Ltd. 320 ITR 561 and submitted that reason to believe does not give arbitrary powers to reopen an assessment and that change of opinion cannot be reason to believe that income chargeable to tax has escaped assessment.
Contention of the Revenue:
