| The Tax Publishers2022 TaxPub(DT) 0397 (Mum-Trib) INCOME TAX ACT, 1961
Section 147
Oversight, inadvertence or mistake of AO or error discovered by him on reconsideration of the same material tantamounted to a mere change of opinion and, the same did not give him power to reopen concluded assessment. Therefore, AO wrongly assumed jurisdiction and reopened concluded assessment of assessee company, i.e., without satisfying the mandate of law as required under section 147, therefore, reassessment order passed by him under section 143(3) read with section 147, could not be sustained and was liable to be struck down.
|
Reassessment - Validity - Change of opinon by AO -
AO reopened assessment on the reasoning that assessee claimed depreciation on electrical fittings @ 15%, as against its entitlement for the same @ 10%, and excessive depreciation stood allowed to assessee. Assessee pleaded change of opinion by AO. CIT(A) held that entitlement of assessee for claim of depreciation on electrical installations was not looked into by AO in the course of the original assessment proceedings, therefore, in the absence of any formation of a view by AO the concept of 'change of opinion' could not be brought into play. Held: Oversight, inadvertence or mistake of AO or error discovered by him on reconsideration of the same material tantamounted to a mere change of opinion and, the same did not give him power to reopen concluded assessment. Therefore, AO wrongly assumed jurisdiction and reopened concluded assessment of assessee company, i.e., without satisfying the mandate of law as required under section 147, therefore, reassessment order passed by him under section 143(3) read with section 147, could not be sustained and was liable to be struck down.
Relied:NYK Lime (India) Ltd. v. Dy. CIT (No.2) (2012) 346 ITR 361 (Bom-HC) : 2012 TaxPub(DT) 2561 (Bom-HC) & Purity Tech Textile (P) Ltd. v. Asstt. CIT & Anr. (2010) 325 ITR 459 (Bom) : 2010 TaxPub(DT) 1463 (Bom-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2008-09
IN THE ITAT, MUMBAI BENCH
 SUBSCRIBE FOR FULL CONTENT
|