Reopening inspired from change of opinion is liable to be quashed

BNY Mellon Technology Private Limited Vs ACIT (Madras High Court)

Madras High Court held that reopening of assessment invoking provisions of section 148 of the Income Tax Act inspired from a review and a change of opinion is liable to be quashed and set aside.

Facts- The specific case of the petitioner is that invocation of Section 148 of the Act on 25.03.2021 which is subject matter of challenge was without jurisdiction as the petitioner had filed all the documents that were required for assessment before the assessment order came to be passed on 28.09.2018 and therefore invocation of Section 148 for the purpose of re-assessment to Section 147 of the Act as it stood prior to its amendment with effect from 01.04.2021 during the period in dispute was not available to the Income Tax Department.

Conclusion- Held that the reasons given for re-opening of the Assessment along with a notice issued under Section 143(2) read with Section 147 of the Income Tax Act, 1961 on 05.2021 is also based on the Profit and Loss Account. Thus, there is no scope for re-opening of the assessment which was completed on 09.2018 under Section 143(3) read with section 92CA(3) and Section 144C(8) of the Act. Clearly, the reasons given for re-opening of the assessment is inspired from change of opinion.

FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT

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