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2011 (3) TMI 1634 - HC - Income TaxRe-assessment Proceedings u/s 147 - Mere Change in Opinion - reason to believe - reopening was made by AO on the basis of "tangible material‟ in the form of tax audit report filed by the assessee and on the basis of information available in the Profit and Loss account - ITAT quashed the reassessment order as the reopening was on mere change of opinion on the basis of material already available on record at the time of completion of the original assessment HELD THAT:- It is not in dispute that the re-assessment proceedings were initiated by the AO on the basis of tax audit report filed by the assessee in Form No.3CD and on the basis of information available in the Profit and Loss account. There was no reference to any new material by the AO which had come into his possession after the completion of original assessment under Section 143(3) of the Act. It is also a matter of record that before initiating re-assessment proceedings by issuing notice under Section 148 of the Act, the AO had initiated proceedings under Section 154 of the Act for the same reasons and proceedings initiated under Section 154 were dropped by him after the issuance of notice under Section 148 and were thus pending on the date of initiation of the re-assessment proceedings. In these circumstances, the Tribunal while setting aside the reassessment proceedings relied upon the Full Bench Judgment of this Court in the case of Kelvinator of India Ltd. [2010 (1) TMI 11 - SUPREME COURT], where held that No new material has come on record. No information has been received. It is merely a fresh application of mind by the same Assessing Officer to the same set of facts. Also held if a notice under Section 148 has been issued without the jurisdictional foundation under Section 147 being available to the Assessing Officer, the notice and the subsequent proceedings will be without jurisdiction, liable to be struck down in exercise of writ jurisdiction of this Court. If 'reason to believe' be available, the writ court will not exercise its power of judicial review to go into the sufficiency or adequacy of the material available. We do not find any substantial question of law that would arise for consideration in this appeal. The appeal is devoid of any merit and is accordingly dismissed.
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