Case Law Details
Brief facts of the case are that the respondent is a joint venture with Government of Madhya Pradesh, declared its total income nil in its return filed for the assessment year 2001-2002 and 2002-2003. The book profit was calculated under section 115JB of the Act. The case was selected for scrutiny, notices were issued and the assessment order was framed under section 143(3) of the Act on 27.02.2004. Subsequently a notice under Section 148 of the Act was issued on 09.04.2007 to the assessee. Reasons for re-assessment supplied to the assessee were that the assessee had not disclosed the income correctly, had wrongly claimed depreciation of brought forward loss while as per the provisions as contained in Section 115JB of the Act the same was required to be adjusted from the lower of brought forward loss or unabsorbed depreciation. The assessing officer was of the opinion that the aforesaid adjustment was wrongly made by the assessee and on the aforesaid ground the assessing officer was of the opinion that the income of the assessee was wrongly shown in the return. The assessment order was an escaped assessment within the meaning of provisions of section 147 of the Act. On the aforesaid reasons, the assessing officer had formed an opinion that the assessee had not disclosed truly and fully all material facts necessary for the assessment so the income to be reassessed under section 147 read with section 148 of the Income Tax Act. On the aforesaid ground, the assessment order was re-framed. This order was assailed by the assessee before the Commissioner of Income Tax (Appeals).
Held :-
7. We have considered the case and find that it is a case in which after filing of the return by the assessee the matter was scrutinized and on thorough examination of the facts, the initial assessment order was passed. On the basis of same set of facts, if the assessing officer was of the view that it was a case of escaped assessment, then it was a case of change of opinion and not a case for reassessment. In the present case, there was no new material before the assessing officer to record a finding that on the basis of some new material, he had formed an opinion that it was a case of escaped assessment and the assessee had not disclosed the fact truly and rightly. On the basis of the material on which the assessment order was passed, the assessing officer could not form another opinion that the original assessment order was an escaped assessment and case deserves to be reassessed under section 147(b), then it was a case of change of opinion and not a case for reassessment as is required under section 147(b) of the Act.
IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR
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pl tell me when order has been passed U/s 143(3) of Income tax act,the same order can be challenge by the Income Tax officer by issuing 148 notice