| The Tax Publishers2019 TaxPub(DT) 4796 (Mum-Trib) : (2019) 202 TTJ 0560 INCOME TAX ACT, 1961
Section 147 r/w Sections 143(3), & 148
AO was not empowered to review the already concluded issues under section 143(3) and review in the garb of reassessment was not permissible under the law, reassessment merely based on change of opinion was therefore, not valid.
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Reassessment - Validity - Change of opinion -
Reassessment proceeding had initiated by the AO on the ground that certain deduction/exemption were wrongly allowed/computed in assessment order passed under section 143(3). Held: Reassessment proceedings have been triggered on the basis of findings in succeeding assessment year, i.e., 2005-06 and therefore, applying the same to impugned assessment year would amount to review of the order which was not permissible under law. The issue was already examined by AO in the regular assessment proceedings. To reiterate the settled position of law, review of orders by revenue authorities was not permissible under law and review in the garb of reassessment was not permissible. Further, as settled by numerous judicial pronouncements, the reassessment proceedings could not be triggered merely on the basis of change of opinion. In contrast, when no opinion was formed by AO on any issue during original assessment proceedings and the same was altogether skipped, there would be no bar to reach the requisite satisfaction on the basis of findings in subsequent assessment year. In such a case, deeming fiction of Explanation2 would come into play.
Relied:Raymond Woollen Mills Ltd. v. ITO 1999 TaxPub(DT) 0348 (SC) : (1999) 236 ITR 34 (SC),Rabo India Finance Ltd. v. DCIT 2014 TaxPub(DT) 1244 (Bom-HC) : (2014) 356 ITR 200 (Bom), Multi Screen Media Private Ltd. v. UOI & Anr. 2010 TaxPub(DT) 1542 (Bom-HC) : (2010) 324 ITR 54 (Bom), CIT v. Kelvinator of India Ltd. 2010 TaxPub(DT) 1335 (SC) :(2010) 320 ITR 561 (SC), CIT v. Foramer France 2003 TaxPub(DT) 0933 (SC): (2003) 264 ITR 566 (SC), Asian Paints Ltd. v. DCIT 2009 TaxPub(DT) 0640 (Bom-HC) : (2009) 308 ITR 195 (Bom),Plus Paper Food Pac Ltd. v. ITO 2015 TaxPub(DT) 1367 (Bom-HC) : (2015) 374 ITR 485 (Bom), Pr. CIT v. Century Textiles and Industries Ltd. 2018 TaxPub(DT) 6809 (Bom-HC) : (2018) 412 ITR 228 (Bom),ACIT v. Rajesh Jhaveri Stock Brokers Pvt. Ltd. 2007 TaxPub(DT) 1257 (SC): (2007) 291 ITR 500 (SC) and ,Export Guarantee Corporation of India Ltd. v. Addl. CIT 2013 TaxPub(DT) 0551 (Bom-HC) : (2013) 350 ITR 651 (Bom)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2004-05
INCOME TAX ACT, 1961
Section 147 r/w Sections 36(1)(vii) & 36(1)(viia)
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