INCOME TAX ACT, 1961

Section 148

Reassessment - Change of opinion - Application of higher rate of tax @30% on certain STCG as against 15% assessed under section 143(3) -

Assessee had shown income in respect to Short Term Capital Gains to be taxed at concessional rate of 15% in assessment under section 143(3). Reassessment proceedings were initiated resulted into application of higher rate of tax @ 30% on certain STCG. Reassessment proceedings were initiated by issuance of notice under section 148 on the ground that since there was incorrect set-off of brought forward Short Term Capital Losses-STT paid with STCG (non-STT Paid) which were taxable at regular rate of 30%. According to AO, the same ought to have been set off from Short-Term Capital Gains (STT Paid) which were taxable at concessional rate of 15%. Held: AO could not be granted second chance to have a relook at the matter without there being any cogent material on record which comes to his possession subsequently so as to justify reopening. Reassessment proceedings stood vitiated for want of fulfillment of primary conditions as envisaged by section 147 since AO had formed an opinion during assessment proceedings under section 143(3) and adopted one of the possible views. Therefore, reopening of assessment was not justified on mere change of opinion.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

INCOME TAX ACT, 1961

Section 14A

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