Case Law Details
Glen Propbuild Private Limited Vs DCIT (ITAT Delhi)
ITAT Delhi held that proviso to Section 147 of the Income Tax Act gets applicable as reopening of assessment is initiated after four years of original assessment. Accordingly, re-opening of assessment based on mere change of opinion is unsustainable.
Facts- In this case, the assessee was earlier assessed under Section 143(3) on 26.09.2008 at a loss of Rs.31,91,657/-. Thereafter, the present proceedings under Section 147 were initiated.
The assessee has challenged the validity of reopening before the ld. CIT(A) by giving plethora of case laws. However, ld. CIT(A) brushed aside all the submissions and held that Assessing Officer has reopened assessment after recording the reason as per the provisions of the Act. Against this order, assessee is in appeal before us.
Conclusion- We note that reopening notice in this case has been issued after four years of the original assessment under Section 143(3) of the Hence, proviso to Section 147 is clearly applicable.
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