Whether notice u/s 148 can be issued for disallowance of a particular expense which has been duly examined by the AO during the Assessment proceedings by asking for specific details but not mentioned in Assessment Order.
In the instant case, the assessee incurred certain losses on account of non- recovery of money and accordingly reduced from the income. The amount so written off was duly examined by the AO and no adjustment was made for it. Later, a notice u/s 148 was issued stating that said issue has not been examined earlier as not specified in the Assessment order. The Hon’ble High Court, considering the fact that the issue was examined as query was raised by AO, a notice for another examination cannot be issued, as it would amount to mere change of opinion and the appeal was dismissed accordingly.
Maruti Suzuki India Ltd. Vs. DCIT, WP(C) 8562/2007 & CM 16150/2007 & 17153/2007, Date of judgment: 13.05.2013, Delhi High Court