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[2009] 308 ITR 190 (BOM.) HIGH COURT OF BOMBAY Asteroids Trading and Investments (P.) Ltd. v. Deputy Commissioner of Income-tax D. K. DESHMUKH AND V. C. DAGA, JJ. W. P. NO. 1352 OF 2008 JULY 10, 2008 Section 147 of the Income-tax Act, 1961 - Income Escaping Assessment - General Where petitioner had made full disclosure necessary for claiming deduction under section 80M and Assessing Officer, after applying his mind to relevant records, had made a specific order allowing deduction, subsequent issue of notice on ground that deduction under section 80M was wrongly allowed, being based on change of opinion, was invalid [Assessment year 2003-04] [In favour of assessee] Asteroids Trading & Investments (P.) Ltd. v. Dy. CIT [2009] 308 ITR 190/223 CTR (Bom.) 144 In the assessment year 2003-04 the petitioner received dividends of Rs. 69,85,550 from other domestic companies and Rs. 14,094 from Mutual Funds. The petitioner distributed to its shareholders dividends of Rs. 31,00,000 on 6-10-2003, falling in the assessment year 2004-05, before the due date for filing the return of income for the said assessment year 2003-04. In accordance with section 80M the petitioner claimed that the dividends of Rs. 31,00,000 declared by it should be allowed as a deduction against the dividends of Rs. 69,99,644 received by it. This claim was accepted by the Assessing Officer in the regular assessment order. However, subsequently, the assessment was reopened holding that the deduction under section 80M was wrongly allowed. Held that the petitioner had made full disclosure necessary for claiming deduction under section 80M and the Assessing Officer, after applying his mind to the relevant records, had made a specific order allowing the deduction. Nothing new had happened and there was no change of law. No new material had come on record; no information had been received. It was merely a fresh application of mind by the same officer to the same set of facts. Thus, it was a case of mere change of opinion, which did not provide jurisdiction to initiate proceedings under section 148. S. E. Dastoor, Murlidharan and A. K. Jasani for the Petitioner. B. M. Chatterji and P. P. Bhosale for the…

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