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| The Tax Publishers2019 TaxPub(DT) 6933 (Del-HC) : (2021) 432 ITR 0084 INCOME TAX ACT, 1961
Section 147
Since there was no basis for re-opening of assessment, except the presumptive observation of Revenue audit, which itself was not based on any tangible material, the reassessment proceedings initiated against assessee were liable to be quashed.
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Reassessment - Validity - Re opening based on audit objection -
Assessee-company carrying on life insurance business, filed its return of income that was picked up for scrutiny. Initially the assessment was completed under section 143(3). Subsequently, after expiry of four years, a notice under section 148 was issued for initiating reassessment proceedings. Held: There was no material in possession of AO, other than the observation of Revenue audit to proceed against the assessee under section 147. Further, the case fell squarely within the realm of 'change of opinion', which was impermissible as a basis for re-opening of assessments after a lapse of four years. Therefore, as there was no basis for re-opening of assessment, except the presumptive observation of Revenue Audit, which itself was not based on any tangible material, the reassessment proceedings initiated against assessee were liable to be quashed.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
INCOME TAX ACT, 1961
Section 44
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