The Tax PublishersTax Case (Appeal) No. 702 of 2009
2020 TaxPub(DT) 0126 (Mad-HC) : (2019) 419 ITR 0338

INCOME TAX ACT, 1961

Section 147

Since there was no allegation against the assessee that there was failure on the part of the assessee to make a true disclosure, nor AO had relied on any tangible material, which had come to his knowledge after the filing of the return and intimation under section 143(1), justifying reopening, therefore, reopening by AO was a clear case of change of opinion and consequently bad in law.

Reassessment - Validity - Failure on the part of the assessee to make a true disclosure -

Issue arose for consideration as to whether Tribunal was correct in law in confirming the order of re-assessment framed in terms of section 147 read with 143(3) by Revenue in the second attempt even though there were no fresh materials in his possession justifying the action. Held: It was not in dispute that reopening was based upon the return of income filed by assessee at the first instance. There was no allegation against the assessee that there was failure on the part of the assessee to make a true disclosure, nor AO had relied on any tangible material, which had come to his knowledge after the filing of the return and intimation under section 143(1), justifying reopening. Therefore, reopening by AO was a clear case of change of opinion and consequently bad in law.

REFERRED : DCIT & Anr. v. Zuari Estate Development And Investment Company Ltd. (2015) 373 ITR 661 (SC) : 2015 TaxPub(DT) 2254 (SC) CIT v. Kelvinator of India Limited (2010) 320 ITR 561 (SC) : 2010 TaxPub(DT) 1335 (SC) ACIT v. Rajesh Jhaveri Stock Brokers Pvt. Limited (2007) 291 ITR 500 (SC) : 2007 TaxPub(DT) 1257 (SC) M/s. Tanmac India v. DCIT (2017) 78 Taxmann.com 155 (Madras) : 2017 TaxPub(DT) 0582 (Mad-HC)

FAVOUR : In assessee's favour

A.Y. :



IN THE MADRAS HIGH COURT

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