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| The Tax Publishers2020 TaxPub(DT) 2126 (Mad-HC) : (2020) 426 ITR 0414 INCOME TAX ACT, 1961
Section 147
In the absence of failure on part of assessee to disclose fully and truly all material facts necessary for assessment, reopening done out of mere change of opinion was hit by proviso to section 147 and, therefore, reassessment was quashed as invalid.
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Reassessment - Beyond four years - No allegation as to failure on part of assessee to disclose fully and truly all material facts necessary for assesmsent - Reopening on the basis of audit objection earlier requested to be dropped
AO reopened assessment after expiry of four years from the end of relevant assessment year on the basis of audit objection pointing out factual omissions in original assessment order. Assessee's case was that reopening done out of mere change of opinion was hit by proviso to section 147. Held: AO in the reasons recorded for reopening alleged no failure on part of assessee to disclose fully and truly all material facts necessary for assessment and, further, very same official in response to aduit objection had taken into consideration all the materials placed and requested for dropping of audit objection and, therefore, passing of second order of assessment on the basis thereof amounted to change of opinion on the very same set of facts and therefore, reassessment was quashed as invalid.
Supported by:United Electrical Co. (P) Ltd. v. CIT & Ors. (2002) 258 ITR 317 (Del) : 2002 TaxPub(DT) 1670 (Del-HC), CIT & Anr. v. Foramer France (2003) 264 ITR 566 (SC) : 2003 TaxPub(DT) 933 (SC) and CIT v. A.V. Thomas Exports Ltd. (2008) 296 ITR 603 (Mad) : 2008 TaxPub(DT) 732 (Mad-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2007-08
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