High Court held In the case of M/s Swarovski India Pvt. Ltd. V. DCIT that in this case, queries and issues have been specifically raised and answered by the assessee in the original assessment proceedings. Thus, even though AO did not make any addition in the assessment order, it would have to be accepted that the issue was examined but the Assessing Officer did not find any ground or reason to make any addition or to reject the stand of the assessee. Consequently, it will have to be presumed that the AO had formed an opinion which is now sought to be changed through the re-assessment notice, which cannot be permitted.
Facts of the Case
The original assessment was completed under Section 143(3) on 04.12.2009. Since the brought forward losses of the Delhi Unit had not been accounted for in the assessment order, the petitioner moved an application under Section 154 seeking rectification, which was allowed by the AO, by an order dated 05.03.2010 after verifying the records. This is where the matter rested for more than four years when the impugned notice under Section 148 was issued on 28.03.2013. The reasons for invoking Section 147 of the said Act were supplied to the petitioner and to which the petitioner filed its objections on 07.01.2014. Thereafter, the order dated 18.02.2014 was passed by the AO rejecting the objections.
Contention of the Assessee
The learned counsel for the petitioner submitted that the notice under Section 148 and the proposed re-assessment of income in respect of the assessment year 2006-07 was bad in law because there was no failure on the part of the assessee to disclose particulars which were material for its assessment which was a requirement of the first proviso to Section 147 of the said Act. It was also pointed out that the reasons were also based on mere change of opinion. All the four points, which were raised in the ‘reasons’, were considered by the Assessing Officer at the time of the original assessment.
Contention of the Revenue
The learned counsel for the revenue supported the re-assessment proceedings as also the order dated 18.02.2014 and submitted that the petitioner’s case was validly taken up for re-assessment because of failure on the part of the assessee to fully and truly disclose all the particular materials for its assessment. The reasons for reassessment were given as under:
