S. 143(1) assessment cannot be reopening u/s 147 in absence of “new material”

HV Transmissions Ltd vs. ITO (ITAT Mumbai)

 

The AO accepted the ROI filed by the assessee u/s 143(1). He thereafter issued a notice u/s 148 on the ground that the assessee had claimed a deduction for ERP software and that although only 20% of the said expenses was debited to the P&L A/c, the entire amount was claimed as a deduction. The assessee claimed that the reopening was not valid as there was no “new material” in the AO’s possession. HELD upholding the plea: