INCOME TAX ACT, 1961

Section 147

Reassessment - Issue not examined in original account - No recourse available to revenue to have a second innings -

A search was conducted on the premises under section 132(1) and ultimately an order under section 143(3) was passed. After a period of about 2 ½ years a successor officer probably realised that there were glaring omissions in original order under section 143(3) and issued a notice under section 148(1) stating that a payments was made by assessee in cash contrary to section 40A(3) read with Rule 6DD of the Income Tax Rules, 1962. Held: Only contention raised that in the original assessment order no opinion at all was formed and therefore, it was erroneous for CIT and Tribunal as held to be a case of change of opinion. It was not in dispute that the issue of cash payments and evidence thereof, was before AO and wrongly he ignored it. The remedy before revenue was to have challenge that order but revenue did not do so. Once an issue and evidence thereof, was clearly before an authority and the authority ignores it, it could not later on decide to re-open on that ground and the specious argument that if there was no opinion there can be no change of opinion, would not apply.

REFERRED :

FAVOUR : In assessee's favour

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