Re-Assessment based on Materials already available during Regular Assessment is Mere 'Change of Opinion': Calcutta HC [Read Order]

While quashing the re-assessment proceedings, the Calcutta High Court has held that the re-assessment under the provisions of the Income Tax Act, 1961 based on the materials already available with the income tax department during the course of the regular assessment is mere change of opinion, and hence, not sustainable.

The assessee, The Tinplate Company of India Ltd, filed a writ petition before the High Court challenging the re-assessment order.

The department contended that this Court should not interfere with the reassessment proceeding under Section 147 of the Act since no procedural irregularity has been committed by the assessing officer and there was escapement of income due to wrong claim made by the assessee/petitioner.

Justice Md. Nizamuddin found the submission of the department as not convincing and held that “after perusing original assessment order under Section 143(3) of the Act as well as recorded reason for impugned reopening of the assessment and considering the submissions of the parties, relevant records available and judgments relied upon by the petitioner I am of the considered view that the impugned notice under Section 148 of the Income Tax Act, 1961 and the proceeding under Section 147 of the Act are not sustainable in law and are liable to be quashed for the reason that the respondent assessing officer has been failed to make out any case that the alleged escapement of income was due to any omission or failure on the part of the assessee/petitioner in disclosing fully and truly the material facts necessary in course of regular assessment.”

“In the facts and circumstances of the case in my considered view it is a clear case of change of opinion since the materials which were already available at the time of regular assessment and which were already considered by the assessing officer at the time of regular assessment, on the basis of very same material and not on any another new material assessing officer wants to take a different view which is not permissible for reopening of an assessment particularly proceedings after regular assessment and after expiry of four years from the end of the relevant assessment year,” the Court said.

To Read the full text of the Order CLICK HERE

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