Reopening based on retrospective amendment after 4 years not permissible in absence of failure in disclosure of material facts by assessee
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “G”, MUMBAI
M/s.Golden Tobacco Limited Vs The Jt.Commissioner of Income-tax
Date of Pronouncement :28. 10.2015
The perusal of `Reasons’ would show that, again, these `Reasons’ have been recorded by the AO by making examination of records, which are part of the existing assessment records, which were available with AO since the time of the framing of the original assessment order u/s 143(3). It is noted that in this case also, no fresh material has come into the possession of the AO. Therefore, following our order of assessment year 2005-2006, we hold that the `Reasons’ are not valid in the eyes of law on this ground, i.e., the `Reasons’ have been recorded without there being any fresh tangible material coming into the possession of the AO after the framing of the original assessment u/s 143(3)
The issue was again examined by the Assessing Officer in the original assessment proceedings u/s 143(3) of the impugned assessment year. Therefore, reopening the same, now on this very issue, which has already been examined by the Assessing Officer, amounts to review or change of opinion on the part of the Assessing Officer. It is settled law that `Reasons’ cannot be recorded, as per law, on the basis of change of opinion by the Assessing Officer. Therefore, viewed from this angle also, impugned `Reasons’ are invalid in the eyes of law, and therefore, reopening of the case and resultant reassessment order becomes bad in law, and therefore, the same is hereby quashed.