INCOME TAX ACT, 1961

Section 147

Reassessment - Change of opinion - Original assessment made under section 143(3) -

During course of original assessment proceeding assessee by and under notice issued under section 142(1) was asked to furnish details mentioned therein in respect of different claims made by assessee. Upon consideration of all documents as supplied by assessee in respect of said notice AO finalized assessment without making any addition. Same AO initiated proceeding by issuance of notice under section 148 after forming opinion/reason to believe that income in respect of certain items escaped assessment. Assessee submitted that it was nothing but change of opinion particularly when assessment had been finalized on same issue taking into consideration relevant documents submitted by him as per requirement of the Revenue. CIT(A) also upheld order of AO. Hence this appeal. Held:, where AO during scrutiny assessment, noticed a claim of exemption made by assessee and having entertained prima facie doubts raised queries, asked assessee to satisfy him with respect to such a claim and thereafter did not make any addition in final order of assessment, he can be stated to have formed an opinion irrespective of as to whether or not in final order, he gave his reasons for not making addition reopening of such assessment be said to be based on change of opinion. No valid reason was found for reopening of assessment particularly when original assessment was finalized on the basis of evidences produced by assessee on same claim made by him as per dictate of the Revenue.

Relied:Gujarat Power Corpn. Ltd. v. ACIT, (2012) 26 taxman.com 51 (Guj.) : 2013 TaxPub(DT) 0409 (Guj-HC)Distinguished:Pr. CIT, Vadodara-2 v. Sun Pharmaceuticals Industries Ltd., (2017) 79 taxman.com 61 (SC) : 2017 TaxPub(DT) 1106 (SC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2012-13

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