2024 (10) TMI 1668 - AT - Income Tax

Reassessment proceedings u/s 147 - change of opinion - reasons to believe - whether some material which is noting but a change of opinion which is bad in law? - HELD THAT - There is no material alien to the record which the AO has referred to for issuing the impugned notice u/s 148 the instant case doesn t fall in the category of oversight inadvertence or a mistake committed by the AO instead it becomes a change of opinion. Therefore the reopening of the case of the appellant is change of opinion and hence bad in law. Appeal of the revenue is dismissed.

Summary

The Appellate Tribunal (ITAT Kolkata) dismissed the revenue's appeal against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi for AY 2012-13. The key legal issue concerned the validity of reopening the assessment under section 147 of the Income Tax Act. The Ld. CIT(A) held that the reopening was based on a mere "change of opinion," which is "bad in law," as the issue had already been examined in the original assessment proceedings culminating in an order under section 143(3) dated 31.03.2014. The Tribunal concurred, quoting para 5.2.8 of the appellate order: "since there is no material alien to the record... the reopening... is change of opinion and hence, bad in law."Since the revenue did not challenge this legal finding, the appeal on merits was deemed infructuous and dismissed.