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2014 (6) TMI 223 - RAJASTHAN HIGH COURTValidity of re-assessment u/s 147/148 of the Act - Mere change of opinion – Held that:- The Tribunal noticed that the assessment order u/s 143(3) of the Act was made after duly considering the materials discovered during the course of the survey - the assessment was made on due application of mind to all the available records - section 147 of the Act did not postulate conferment of power upon the AO to initiate proceedings on the basis of mere change of opinion - section 143(3) of the Act makes it abundantly clear that the AO had not only referred to the impounded documents and records found in the course of the survey u/s 133A of the Act from the business and office premises of the assessee but also those were test checked and evaluated in undertaking that exercise. The endeavour on the part of the AO to initiate a reassessment proceeding u/s 147/148 of the Act on the ground that the same records/documents did disclose that the amount had escaped assessment, is unconvincing and untenable as well - Such a conclusion does certainly stem from a change in opinion - a mere change in the opinion of the AO after completion of the assessment u/s 143(3) of the Act is not a legally approved determinant for valid initiation of reassessment proceeding u/s 147 of the Act the essential and inviolable condition precedent therefor being the reason to believe that any income chargeable to tax has escaped assessment – Relying upon CIT v. Kelvinator of India Ltd. [2010 (1) TMI 11 - SUPREME COURT OF INDIA] - the words "reason to believe" did not admit of conferment of arbitrary powers to the AO to reopen assessment on the basis of mere change of opinion - the AO had no power to review but to reassess and that reassessment has to be essentially based on the fulfilment of certain pre- conditions, as legislatively ordained – Decided against Revenue.
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