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| The Tax Publishers2020 TaxPub(DT) 0461 (Bom-HC) INCOME TAX ACT, 1961
Section 147
When AO consciously considered claim for deduction, which evidenced from questions raised during regular assessment proceedings, it would be evidence of fact that the AO had occasion to apply his mind and had taken a view. Thus, in such circumstances, reopening was a mere change of opinion, which was not permitted.
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Reassessment - Change of opinion - Denial of depreciation in terms of section 43A -
Assessee company was in business of hiring rigs and drilling rigs. AO issue notice for reassessment for disallowing depreciation in terms of section 43A alleging that company's operation were standstill i.e. assets were not in use for business activities and that the rigs and related properties were disposed off to a party and there was restructuring of loans between bank and the buyer. Assessee contested validity of reassessment made contending that it was based on mere change of opinion. Held: When AO consciously considered claim for deduction, which evidenced from questions raised during regular assessment proceedings, it would be evidence of fact that the AO had occasion to apply his mind and had taken a view. Thus, in such circumstances, reopening was a mere change of opinion, which was not permitted.
Followed:Integra Garments & Textiles Ltd. v. ITO & Ors. WP No. 3443 of 2018 decided on 25-1-2019 : 2019 TaxPub(DT) 0907 (Bom-HC)
REFERRED : State Bank of India v. Asstt. CIT & Ors. WP No. 271 of 2018 decided on 15-6-2018 : 2018 TaxPub(DT) 3630 (Bom-HC); Zuari Foods and Farms (P.) Ltd. v. Asstt. CIT WP No. 1001 of 2017 decided on 11-4-2018
FAVOUR : In assessee's favour
A.Y. :
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