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| The Tax Publishers2019 TaxPub(DT) 1013 (Bom-HC) INCOME TAX ACT, 1961
Section 148
Where notice for reassessment was issued by AO under section 148, the same was issued without jurisdiction because assessee had shown absence of any new facts or law coming to notice of AO after passing assessment orders in regular assessment proceedings under section 143(3), therefore, reasons in support of notice, prima facie indicated a change of opinion.
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Reassessment - Change of opinion- Absence of any new facts or law came to notice of AO - -
Assessee was issued notice for reopening of assessment under section 148 after the regular assessment was completed under section 143(3). AO alleged that assessee had deducted expenses in the name of provision towards warranty and as the provisions for warranty was unascertained liability it was required to be disallowed and added to total income of assessee. Merely because the assessee is maintaining its account on mercantile basis, it cannot claim that the provision made towards warranty is an accrued liability.Held: Admittedly, no fresh material/information was obtained by AO as the same did not find a mention in the reasons recorded in support of notice and was a change of opinion. In the case, prima facie, assessee had shown absence of any new facts or law coming to notice of AO after he had passed assessment orders in regular assessment proceedings under section 143(3). Therefore, reasons in support of notice, prima facie, indicated a change of opinion.
FollowedCommissioner of Income Tax v. Kelvinator of India Ltd. (2010) 320 ITR 561 (SC) : 2010 TaxPub(DT) 1335 (SC) and Pr. Commissioner of Income Tax v. M/s. Zee Media Corporation Ltd. - Income Tax Appeal No.854 of 2016, dt. 11-12-2018
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
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