Mere change of opinion on same facts and law does not justify a reassessment

Export Import Bank of India Vs ACIT (ITAT Mumbai) A Full Bench of the Hon’ble Delhi High Court in CIT v. Kelvinator 256 ITR 1 held that even after the Direct Tax Laws (Amendment) Act 1987, (i) the AO must have ‘reason to believe’ that income has escaped assessment, (ii) a mere change of opinion does not justify a re­assessment and (iii) the AO does not have the power of review on the same set of facts and law. The re-assessment proceedings cannot be initiated by the AO when he has accepted the matter in the original assessment, therefore, indicating a mere change of opinion. The princip...