2015 (8) TMI 480 - SC - Income Tax

Reopening of assessment - Capital gains arising on the sale of the premises should not be taxed in the assessment year 1991-92 - HC allowed assessee appeal on validity of reopening notice - Held that:- After going through the detailed order passed by the High Court, we find that the main issue which is involved in this case is not at all addressed by the High Court. Since the assessee's return was accepted under section 143(1) of the Income-tax Act, there was no question of "change of opinion" inasmuch as while accepting the return under the aforesaid provision no opinion was formed and, therefore, on this basis, the notice issued was valid. As decided in Asst. CIT v. Rajesh Jhaveri Stock Brokers Private Ltd. [2007 (5) TMI 197 - SUPREME Court] So long as the ingredients of section 147 are fulfilled, the Assessing Officer is free to initiate proceeding under section 147 and failure to take steps under section 143(3) will not render the Assessing Officer powerless to initiate reassessment proceedings even when intimation under section 143(1)

The offshoot of the aforesaid discussion is to hold that the judgment of the High Court is erroneous and warrants to be set aside. We allow this appeal setting aside the impugned judgment of the High Court. - Decided in favour of revenue.