No Reassessment u/s 147 of IT Act can be made based on a change of opinion: ITAT [Read Order]

The Mumbai bench of Income Tax Appellate Tribunal (ITAT) held that the Re-assessment under Section 147 of the Income Tax Act, 1961 cannot be made based on a change of opinion by the assessing officer.

Ravi Gopal Trivedy, the appellant assessee submitted that the Commissioner of Income-tax National Faceless Appeal Centre (NFAC) passed an order in confirming the notice under Eection 148 of the Income Tax Act based on incorrect information and without application of mind and  made an addition of amount without considering the submissions and documents presented by the assessee, making wrong facts and observations.

Thus the assessee appealed against the order passed by the commissioner of Income Tax(Appeals) for confirming the addition made by assessing officer.

Dr. K Shivram, the counsel for the asseesse contended that the assessee had not claimed any setoff of losses and had offered the entire gain from nonspeculative business to tax and given full and true disclosure of all materials during the original assessment ,there was no specific finding recorded by the assessing officer with respect to the impugned transaction.

It was also submitted that the reopening of assessment was done without any application of mind and on the basis of misunderstood facts.

Smt. Mahita Nair, the counsel for the department strongly objected the contentions of assessee and supported the decisions of lower authorities.

The bench observed that the reopening under Section 147 of Income Tax Act was not valid due to the lack of specific reasons pertaining to the assessee and without linking the information received from the assessee.

The two member bench comprising of Amit Shukla (Judicial Member) and Padmavathy S (Accountant Member) held that the addition made by the assessing officer was not valid and deleted while allowing the appeal.

To Read the full text of the Order CLICK HERE

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