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| The Tax Publishers2019 TaxPub(DT) 4320 (Guj-HC) : (2019) 415 ITR 0001 INCOME TAX ACT, 1961
Section 148
Where notice for reassessment was issued by AO under section 148, the same was issued without jurisdiction because assessee had showed absence of any new facts or law coming to notice of AO after passing assessment orders in regular assessment proceedings under section 143(3), therefore, reasons in support of notice, prima facie indicated a change of opinion.
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Reassessment - Validity - No new fact came to notice of AO -
Assessee-company was engaged in manufacturing pharmaceuticals, fertilizers, chemicals, paints etc. and declared nil income. Income of assessee was assessed under section 143(3) read with section 144(c). AO thought fit to reopen the assessment under section 147. Assessee contended that it was merely a case of change of opinion on the basis of which the assessment was sought to be reopened. AO however overruled the objection and passed the reassessment order. CIT(A) dismissed the appeal of assessee. However Tribunal allowed the appeal of assessee. Held: The finding recorded by Tribunal was that no new material had surfaced on the basis of which the assessment proceedings could be reopened. It appears that the reopening was clearly on account of change of opinion by the AO and this is not permissible under the scheme of the Act. This principle was well explained by this court in the case of Gujarat Power Corporation 2013 TaxPub(DT) 0409 (Guj-HC).
REFERRED : Gujarat Power Corporation Ltd. v. Asstt. CIT (2013) 350 ITR 266 (Guj.) : 2013 TaxPub(DT) 0409 (Guj-HC) Atul Ltd. v. Dy. CIT [ITA No. 1766 (Ahd.) of 2014, dt. 11-7-2018] : 2018 TaxPub(DT) 4365 (Ahd-Trib)
FAVOUR : In assessee's favour
A.Y. :
IN THE GUJARAT HIGH COURT
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