Mere Change of Opinion does not provide Jurisdiction to Re-Open Assessment: Bombay HC [Read Order]

The Bombay High court has recently held that mere change of opinion did not provide jurisdiction to re-open assessment.

Petitioner Survival Technologies Pvt. Ltd. fled return of income for the assessment year 2015-16. The case was subsequently selected by Computer Assisted Scrutiny Selection (CASS) for scrutiny assessment. Notice issued 143(2) of the Income Tax Act and section 142(1) Income Tax Act 1961.In response , assessee claim for deduction under section 35(2AB) of the Income Tax Act 1961. after that  the assessing officer disallowed various claim of the assessee.

Thereafter a notice was issued under section 148 seeking to reopen assessment for the assessment year 2015-16 on the ground that income chargeable to tax had escaped assessment. Petitioner objects the reopening assessment but which was rejected.

Krupa Toprani counsel for the petitioner submitted that petitioner had made full disclosure of all material facts and the assessing officer had already verified and passed an order under section 143 of the Income Tax Act 1961.

Suresh Kumar counsel for the respondent confirmed the decision of the assessing officer.

After considering the contentions of the both parties the division bench of Justice Dhiraj Singh Thakur and Valmiki SA Menezes allowed the writ petition filed by the petitioner and observed that “assessing officer has failed to establish that there was any failure on the part of the assessee to disclose fully and truly any material fact in the present case”

Further the bench determined that,  “It is a settled principle of law that the jurisdiction exercised under section 147 by an Assessing officer has to be tested on the touchstone of the reasons recorded which can neither be improved subsequently nor added in the reply or in the subsequent pleadings.”

To Read the full text of the Order CLICK HERE

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