‘Change of Opinion’ cannot be alleged If AO found Fresh Tangible Materials to re-Open Assessment: Delhi HC [Read Order]

While dismissing a writ petition challenging a re-assessment under section 147/148 of the Income Tax Act, 1961, the Delhi High Court has held that ‘change of opinion’ cannot be alleged if there is fresh tangible material with the Assessing Officer.

The assessee, Mamta Gupta has contended before the High Court that there can be no notice under Section 147 of the Act after four years where the original assessment has been made after scrutiny, since notice in such a case is understood as one prompted by a change of opinion.

Justice Manmohan and Justice Manmeet Pritam Singh Arora observed that despite lapse of four years and a scrutiny assessment, there is fresh tangible material in the present case in the form of information of beneficiaries of bogus LTCL/STCL report prepared by the office of Deputy Director of Income Tax (Investigation) which reveals that Mahanivesh (India) Ltd. is a penny stock whose share price was manipulated in trade by way of a complex web of pre-arranged or artificial transactions to book long term/short term capital gain/loss to the beneficiaries.

Dismissing the petition, the bench observed that “It is also stated in the said report that the petitioner-assessee was involved in the trade of penny stock, inasmuch as, it had sold shares of Mahanivesh (India) Ltd. in the concerned assessment year. Consequently, this Court is of the view that the present case is not a case of change of opinion. Accordingly, the judgment of the Supreme Court in Kelvinator of India Ltd. (supra) is not applicable to the present case.”

To Read the full text of the Order CLICK HERE

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