CIT Vs Hyundai Motor India Ltd (Madras High Court)
Madras High Court held that reassessment proceedings under section 148 of the Income Tax Act initiated on the basis of change of opinion is invalid. Accordingly, appeal of revenue dismissed and substantial questions of law is answered in favour of assessee.
Facts- Assessee, which is a motor car manufacturing company. Post scrutiny assessment, Assessing Officer issued notice dated 17.3.2009 under Section 148 of the Act. After hearing assessee and after rejecting the objections filed to the validity of reopening, the assessment u/s. 143(3) read with Section 147 of the Act was completed on 23.12.2009 determining the total income at Rs.570,17,10,121/-.
CIT(A) allowed the appeal of the assessee. Being aggrieved, the present appeal is filed.
Conclusion- It is clear that details were duly furnished and after considering the same, the original assessment proceedings have been concluded and an assessment order dated 29.12.2006 was passed under Section 143(3) of the Act. Subsequently, Assessing Officer has also passed an order dated 19.2.2007 under Section 154 of the Act to make adjustment in respect of the deduction under Section 80HHC of the Act. It is, therefore, clear that the reopening is based purely on change of opinion.
