Re-opening of assessment based on mistake of opinion is bad in law

ACIT Vs M/s. Sattva Developers Pvt. Ltd. (ITAT Kolkata)

From the entry made on 06-09-2011, it would be found that the Authorised Representative filed all the details excepting the explanation regarding treatment of compensation, and for this purpose the hearing was adjourned to 13-09-2011. The next entry on 19-09-2011 inter alia reads that the Authorised Representative appeared and submitted the details asked for. In view of above, I am of the view that it is a case of change of opinion only and nothing else and I further held that a case cannot be re-open on the basis of change of opinion.

The ld. D/R could not controvert to this factual finding of the ld. CIT(A). Thus this is a clear case of change of opinion and hence the re-opening of assessment based on mistake of opinion is bad in law.

Even otherwise the re-opening is beyond the period of four years and the original assessment was completed u/s 143(3) of the Act on 08.12.2011. In the reasons recorded, there is no whisper that the assessee has failed to disclose truly and fully all material facts required for assessment. In the absence of such an allegation the re- opening is bad in law as the proviso to Section 147 comes into play.

FULL TEXT OF THE ITAT JUDGEMENT

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