Rohan Hemant Thakkar Vs ITO (ITAT Mumbai)
Reopening on Change of Opinion Invalid: ITAT Quashes Entire Assessment
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The AO reopened the assessment to treat capital gains as STCG instead of LTCG, despite the issue having been already examined in original assessment u/s 143(3) where LTCG and exemption u/s 54F were accepted.
The ITAT noted that the reopening was based merely on re-appreciation of the same facts (date of acquisition vs registration) already on record, without any new tangible material. Relying on the Supreme Court ruling in Kelvinator of India Ltd., it held that reassessment cannot be used as a tool for review or change of opinion.
Since there was no failure by the assessee to disclose material facts, and the AO had earlier applied his mind, the reopening lacked valid jurisdiction. Accordingly, the notice u/s 148 and consequent assessment were quashed
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This appeal has been filed by the assessee, challenging the order of the Learned Commissioner of Income Tax (Appeals) [`Ld. CIT(A)’ for short], National Faceless Appeal Centre (“NFAC” for short) passed u/s. 250 of the Income Tax Act, 1961 (`the Act’), pertaining to the Assessment Year (`A.Y.’ for short) 2011-12.
