In a major relief to the Vodafone Idea, the Bombay High Court held that mere change of Opinion of the AO cannot be reason to reopen Assessment.
The Petitioner, Vodafone Idea Ltd. has issued the impugning a notice issued under Section 148 of the Income Tax Act 1961 for A.Y.-2013-2014 and for quashing an order dated 5th December 2019 passed by respondent disposing of the objections filed by petitioner against initiation of reassessment proceedings for A.Y.-2013-2014.
For A.Y. 2013-2014 petitioner filed return of income on 30th November 2013 declaring total income at loss under normal provisions and Rs.273 crores under Section 115JB of the Act. Revised return of income was also filed declaring income as shown in original return of income. The assessment was completed on 30th December 2016 under Section 143(3) of the Act determining total income under normal provisions and under Section 115Jb of the Act.
The coram of Justice R.N.Laddha and Justice K.R.Shriram held that the entire basis for proposing to reopen, as can be seen from the reasons, is on the documents and submissions which were available before the Assessing Officer, before passing of the original assessment order. In fact, in the reasons, it is also recorded that the same issue was considered by the earlier Assessing Officer during the assessment proceedings. The Assessing Officer notes that the assessee had made submissions on these items earlier but still states that income chargeable to tax has escaped because in his opinion certain amounts are required to be added back in profit and loss account and certain amounts should not have been disallowed. Where on consideration of material on record, one view is conclusively taken by the Assessing Officer, it would not be open to reopen the assessment based on the very same material with a view to take another view.
“We are satisfied that the petitioner had truly and fully disclosed all material facts necessary for the purpose of assessment. Not only material facts were disclosed by the petitioner truly and fully but they were carefully scrutinized and figures of income as well as deduction were reworked carefully by the Assessing Officer. In the reasons for reopening, there is not even a whisper as to what was not disclosed. In our view, this is not a case where the assessment is sought to be reopened on the reasonable belief that income had escaped assessment on account of failure of the assessee to disclose truly and fully all material facts that were necessary for computation of income but this is a case wherein the assessment is sought to be reopened on account of change of opinion of the Assessing Officer,” the court said.
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