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Income cannot be reassessed on a mere change of opinion
Case Law Details
- Case Name
- Kelvinator of India Ltd. (Supreme Court of India)
- Courts
- Supreme Court of India
In a recent ruling Supreme Court (SC) [2010-TIOL-06- SC-IT-L13] in the case of Kelvinator of India Ltd. (Taxpayer) held that income cannot be reassessed on a mere change of opinion, as that would imply conferring arbitrary powers on the Tax Authority. It is only when there is a ‘tangible material’ to believe that income has escaped assessment that the power of reassessment can be exercised and the reasons for reassessment must have a live link with the formation of the belief.
Background
The pre-amended provision of the ITL empowered the Tax Authority to reassess the income if it h...
