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| The Tax Publishers2019 TaxPub(DT) 8083 (Ctk-Trib) INCOME TAX ACT, 1961
Section 147
Assessee had filed balance sheet and income and expenditure account and furnished various details as required by AO and after verifying the same, AO accepted returned income of assessee and framed section 143(3) assessment. Reassessment proceedings under section 147 were initiated by AO on the same income and expenditure account. Hence, it could not be said that any new material had come to the notice of AO and thus reappraisal of same material to initiate reassessment proceedings tantamounted to change of opinion and was, therefore, bad-in-law.
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Reassessment - Reason to believe - Change of opinion - No tangible material
AO reopened assessment by issuing section 148 notice on the ground that assessee had claimed certain expenses which were of capital in certain expenses which were of capital in nature and, therefore, not allowable as deductible under section 37(1). Assessee's case was that there was no new tangible material available with AO while resorting to section 147/148, more specifically, while framing original assessment under section 143(3), there was full disclosure of material facts by assessee and on the basis of those facts, assessment was completed under section 143(3).Held: Assessee had filed balance sheet and income and expenditure account and furnished various details as required by AO and after verifying the same, AO accepted returned income of assessee and framed section 143(3) assessment. Reassessment proceedings under section 147 were initiated by AO on the same income and expenditure account. Hence, it could not be said that any new material had come to the notice of AO and thus reappraisal of same material to initiate reassessment proceedings tantamounted to change of opinion and was, therefore, bad-in-law.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2005-06
INCOME TAX ACT, 1961
Section 11
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