ACIT Vs Marico Ltd. (Supreme Court of India)
Supreme Court of India has upheld a High Court decision that set aside a notice issued by the Assistant Commissioner of Income Tax (ACIT) seeking to re-open the assessment of Marico Ltd. for the Assessment Year 2014-15. The top court’s brief order, which dismissed the revenue’s special leave petition, reinforces the principle that an issue already examined and considered by the Assessing Officer during the original assessment proceedings cannot form the basis for a subsequent re-opening under Section 148 of the Income-Tax Act, 1961, terming it a mere “change of opinion.”
The case originated from the assessment of Marico Ltd.’s income for the financial year 2013-14, relevant to Assessment Year 2014-15. The original assessment was completed, and an order under Section 143(3) of the Income-Tax Act was passed by the Assessing Officer on January 30, 2018.
During the course of these original assessment proceedings, records indicate that the Assessing Officer had raised specific queries related to certain aspects of Marico Ltd.’s financials on September 25, 2017. Marico Ltd., in turn, had provided detailed responses and justifications for its stands on these queries through letters dated October 10, 2017, and December 21, 2017. The Assessing Officer proceeded to pass the assessment order after considering these submissions.
