The Tax Publishers2020 TaxPub(DT) 3597 (Mad-HC) : (2021) 430 ITR 0242 : (2020) 317 CTR 0440

INCOME TAX ACT, 1961

Section 147

Reopening of assessment on the same set of facts amounted to mere change of opinion and, therefore, reassessment was set aside as valid.

Reassessment - Validity - Change of opinion by AO -

AO reopened assessment by issuing section 148 so as to disallow deductions under section 80-IA. Assessee alleged non-application of mind on AO's part. Held: Original assessment order was passed by AO after taking into consideration of all the material facts. During reassessment proceeding also, AO had not found any tangible material to form belief that income had escaped assessment. Therefore, without any application of mind, AO re-opened assessment on mere change of opinion which was not permissible under law. Accordingly, reassessment was set aside.

Allied CIT v. M/s. Elnet Technologies Ltd., and CIT v. Chennai Properties and Investments Ltd., in which the judgment in the case of CIT v. Tidel Park Ltd., passed in TCA. No. 901 of 2015, dated 3-8-2020 : 2020 TaxPub(DT) 3159 (Mad-HC)Followed CIT v. Kelvinator of India Ltd., reported in (2010) 187 Taxman 312 (SC) : (2010) 320 ITR 561 (SC) : 2010 TaxPub(DT) 1335 (SC)

REFERRED :

FAVOUR : In assessee favour

A.Y. : 2005-06

IN THE MADRAS HIGH COURT

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