Law:

Section:

Section 147 of the Income-tax Act 1961 - Income escaping assessment - General - Assessment year 2002-03 Where assessment was reopened after expiry of four years from end of relevant assessment year as Assessing Officer was of opinion that lease rent paid by petitioner for gas cylinders during relevant accounting period had wrongly been claimed, as Assessing Officer had already considered this issue during original assessment, reassessment was not justified [In favour of assessee] Where the assessment was reopened after expiry of four years from the end of the relevant assessment year as Assessing Officer was of the opinion that the lease rent paid by the petitioner for gas cylinders during the relevant accounting period had wrongly been claimed because according to the Assessing Officer during the same accounting period gas cylinders owned by the petitioner were sold off working out short-term capital gain: Held that, whether the lease rent was wrongly claimed or not was an issue on which the Assessing Officer had applied his mind at the time of framing the original assessment by calling for necessary information and after considering the explanation, accepted the stand of the assessee that the lease rent was allowable as business expenditure. In the aforesaid facts and circumstances of the case, it was apparent that not only there was no failure or omission on the part of the petitioner, the Assessing Officer having considered the said issue before framing the original assessment, the action of the respondent authority in issuing the impugned notice under section 148 was nothing else but change of opinion on the same set of facts. Hence, the reassessment was not justified. Tushar P. Hemani and Ms. Paurami Sheth for the Petitioner. Bhatt and Mrs. Mauna M. Bhatt for the Respondent. . JUDGMENT 1 D.A. Mehta, J.-Having heard learned counsel appearing for the respective parties, the petition is taken up for final hearing and disposal today. Rule. Learned counsel for the respondent authority is directed to waive service. 2. The assessment year in question is 2002-03. On October 31, 2002, the petitioner filed a return of income showing total income at Rs. nil. After…

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