Change of Opinion Based on Existing Records Held Invalid; Section 148 Notice Set Aside

Sapphire Foods India Ltd. Vs ACIT (OSD) Delhi & Ors. (Delhi High Court) Core Issue The Delhi High Court was called upon to decide whether reassessment proceedings initiated under Sections 148A(d) and 148 of the Income-tax Act, 1961 for AY 2016–17 were sustainable when (i) the issue sought to be reopened had already been examined in a completed scrutiny assessment under Section 143(3), and (ii) the reopening was triggered solely by a Revenue Audit objection. The Court also examined whether the notice dated 31.03.2023 was barred by limitation under Section 149 read with the erstwhile firs...