Allowing the petition the Court held that it was found that issue regarding depreciation on goodwill was considered by Assessing Officer while completing assessment and Assessing Officer was satisfied with explanation offered in respect of query raised. The reopening of assessment merely on basis of change of opinion from that held earlier during course of assessment proceedings did not constitute justification and reasons to believe that income chargeable to tax had escaped assessment. Even if it is an error that the Assessing Officer discovered, still the error discovered on a reconsideration of the same material does not give him power to reopen the assessment. Notice and order disposing the objection is quashed and set aside. Followed, Indian & Eastern Newspaper Society v. CIT [1979] 2 Taxman 197/119 ITR 996 (SC), Aroni Commercials Ltd. v. Dy. CIT [2014] 224 Taxman 13 (Mag.)/362 ITR 403 (Bom)(HC). (AY. 2016-17)
Sterlite Technologies Ltd. v. Dy. CIT (2023) 459 ITR 83 / 295 Taxman 488 (Bom.)(HC)
S. 147 : Reassessment-With in four years-Depreciation-Goodwill-Query raised and reply was filed-Issue was considered in the course of assessment proceedings-Audit-Even if it is an error that the Assessing Officer discovered, still the error discovered on a reconsideration of the same material does not give him power to reopen the assessment-Change of opinion-Reassessment notice and order disposing the objection is quashed. [S. 32, 148, Art. 226]