The Tax Publishers2021 TaxPub(DT) 3469 (Del-Trib)

INCOME TAX ACT, 1961

Section 147

On mere change of opinion by AO on the same set of facts the, reopening of assessment was not permissible.

Reassessment - Validity - Change of opinion by AO -

AO reopened assessment and thereby reduced the cost of plant and machinery included in block of fixed assets, i.e., written down value and also the claim of depreciation on the ground that the waiver of loan was related to the cost of acquisition of plant and machinery. Assessee challenged this by alleging change of opinion by AO. Held: AO considered return of income, computation of income, balance sheet, profit and loss account and tax audit report and raised queries and reviewed reply of assessee. From these very records, AO noted and formed a belief that income had escaped assessment which means that there was no new tangible material or information. The relevant note to the balance sheet showed that AO desired to re-examine/review the very same note for assumption of jurisdiction under section 148. This was nothing but mere change of opinion by AO on the same set of facts. In absence of tangible new material, assumption of jurisdiction under section 148 was not permissible and, therefore, reassessment notice was qashed as invalid.

Supported by:Kelvinator of India Ltd. (2002) 256 ITR 1 (Del) : 2002 TaxPub(DT) 1348 (Del-HC) and (2010) 320 ITR 561 (SC) : 2010 TaxPub(DT) 1335 (SC) and Madhukar Khosla (2004) 267 ITR 165 (Guj-HC) : 2004 TaxPub(DT) 1370 (Guj-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2004-05



IN THE ITAT, DELHI BENCH

N.K. BILLAIYA, A.M. & AMIT SHUKLA, J.M.

Bharti Airtel Ltd. v. CIT(A)

ITA No. 5389/Mum/2010

17 June, 2021

Appellant by: Anil Bhalla, CA

Respondents by: Satpal Gulati, CIT-DR

ORDER

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