ARVIND POLYCOT LTD Vs. CHANDRA RAM

JUDGEMENT

(1.) THE petitioner has challenged a notice dated 15.3.2001 issued by the respondent -Assessing Officer under section 148 of the Income -tax Act, 1961 (hereinafter to be referred to as "the Act") seeking to reopen the assessment in case of the petitioner for the assessment year 1997 -98. The petition arises in the following factual background:

(2.) TAKING us through the documents on record, Mr. S.N. Soparkar, learned counsel for the petitioner contended that in the original assessment, the Assessing Officer had examined the question of deduction of the payment made by the assessee - Company by way of retrenchment compensation pursuant to Voluntary Retirement Scheme(hereinafter to be referred to as "V.R.S."). The assessee had given detailed reply and supported such a claim placing reliance on several decisions of various Courts. Satisfied that such claim was valid, the Assessing Officer, in the original assessment, made no disallowance. The counsel submitted that the Assessing Officer, having formed an opinion that the claim was genuine and valid, cannot now reopen the assessment which would be based on mere change of opinion.

(3.) THE counsel further submitted that in any case reopening of an assessment on the basis of opinion of the C.B.D.T would not be permissible. He submitted that the C.B.D.T cannot give any directives to the Assessing Officer to frame assessment in a particular manner. Further, the opinion of the C.B.D.T cannot be placed on the same footing as that of statutory provisions or the pronouncement by a Court of competent jurisdiction.