Case Law Details
FIS Global Business Solutions India Pvt. Ltd. Vs PCIT (Delhi High Court)
Reliance by the Revenue upon an audit report, cannot be considered as tangible material. This Court is of the opinion that Carlton Overseas Pvt. Ltd. v. Income Tax officer & Ors., (2009) 318 ITR 295 concludes the issue in the present case; the audit objection merely is an information. As reiterated in Kelvinator (supra) by the Supreme Court, change of opinion is impermissible. The Revenue was clearly barred by provisions of Section 147/148 of the Act.
In the present case, the reassessment notice is solely based on an audit Having regard to the fact that the assessee’s challenge to the previous year’s re-assessment orders was successful – in FIS Global Business Solutions India Pvt. Ltd. v. ACIT 2018 (408) ITR 75 (Del), the reassessment proceedings are unsustainable.
FULL TEXT OF THE HIGH COURT ORDER / JUDGMENT
1. Issue notice. Sh. Sanjay Kumar, Advocate accepts notice. With parties’ consent, the writ petition was heard finally.
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