INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - Change of opinion by AO -

AO on the basis of audit objection as regards alleged overstatement of capital fund, reopened assessment and made addition. Assessee challenged this on the ground of change of opinion by AO. Held: As evident from documents submitted by assesse, issue being subject-matter of reopening was already examined by AO at the time of making original assessment under section 143(3). In response to questionnaire issued by AO, assessee submitted details of capital funds. Financial statement was also submitted before AO and notes to account were also appended with financial statements. Further, assessee had duly replied to audit objections as per his letter. Accordingly, issue was already examined by AO at the time of framing original assessment. Thereafter, AO passed order under section 143(3) and accepted nil return of assessee. Accordingly, reopening of assessment was nothing but mere change of opinion by AO which could not be upheld.

Followed:CIT, Delhi v. M/s. Kelvinator of India Limited [Civil Appeal Nos. 2009- 2011 of 2003, dated 18-1-2010 (Supreme Court)] : 2010 TaxPub(DT) 1335 (SC))Pr. CIT-I, Ludhiana v. Baldev Singh, Proprietor of M/s. Nankana Sahib Road Lines [ITA No. 286 of 2016 (O&M) (Punjab and Haryana High Court)] : 2018 TaxPub(DT) 0829 (P&H-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

INCOME TAX APPELLATE TRIBUNAL RULES, 1963.'

Rule 34(5)(c)

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