1 itxa2465-10 sas IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.2465 OF 2010 The Commissioner of Income Tax-7, Mumbai ..Appellant. V/s. Vigneshwara Exports Ltd. ..Respondent. Mr. Suresh Kumar with Ms. Suchitra Kamble for the appellant. None for the respondent. CORAM : J.P. DEVADHAR AND K.K. TATED, JJ. DATED : 5TH SEPTEMBER, 2011 P.C. :- 1. Though several questions are raised by the revenue in this appeal, the basic issue raised in this appeal is, whether the ITAT was justified in holding that the reopening of the assessment under Section 148 of the Income Tax Act, 1961, was bad in law. 2. In the present case, the assessment for AY 2002-03 was sought to be reopened by the assessing officer on the ground that there was difference in the closing stock and the opening stock as per the financial statements filed by the assessee along with the return of 2 itxa2465-10 income. In view of the discrepancy in the opening stock and the closing stock, the assessing officer was of the opinion that excess relief has been granted to the assessee under Section 80HHC of the Income Tax Act, 1961. 3. The assessee contested the opening of the assessment by filing appeal before the CIT(A) which was dismissed. 4. On further appeal filed by the assessee, the ITAT called for remand report, wherein, the assessing officer clearly admitted that the discrepancy allegedly noticed by him in the closing stock as on 31st January, 2001 and the opening stock as on 1st April, 2001 was due to the mis-reading of the schedules attached to the financial statements. In these circumstances, the decision of the ITAT in holding that the reopening of the assessment was bad in law cannot be faulted. Accordingly, the appeal is dismissed with no order as to costs. (K.K. TATED, J.) (J.P. DEVADHAR, J.)