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| The Tax Publishers2019 TaxPub(DT) 6375 (Mad-HC) : (2019) 418 ITR 0427 : (2020) 312 CTR 0035 : (2019) 267 TAXMAN 0046 INCOME TAX ACT, 1961
Section 147
Reassessment poceedings based on mere change of opinion on the same facts and circumstances, which were already in the knowledge of AO during original assessment proceedings were invalid.
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Reassessment - Reason to believe - Change of opinion -
AO reopened assessment on the ground that assessee had not been registered under section 12A and was, therefore, not entitled to claim exemption on corpus fund under section 11(1)(d). Held: Assessee at no point of time, claimed to be a trust or an institution possessing registration under section 12A. Consequently, there was no claim for any exemption under section 11(1)(d). In such circumstances, AO misdirected himself in posing such a question and stating the same to be a reason for reopening. What AO had done was to review scrutiny assessments, completed under section 143(3). In reasons recorded for reopening, there was no reference to any tangible material having come to the notice of AO after scrutiny assessments under section 143(3) warranting reopening of the assessments. There was no finding as to how income chargeable to tax has escaped assessment and this was on account of failure of assessee to fully and truly disclose all particulars. In the absence of any of these, reopening has to be held to be wholly unsustainable and a clear case of change of opinion.
REFERRED : ITO v. TechSpan India (P) Ltd. (2018) 404 ITR 10 (SC) : 2018 TaxPub(DT) 1991 (SC).
FAVOUR : In assessee's favour.
A.Y. : 1998-99 to 1999-2000
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