PCIT Vs NTPC Ltd (Delhi High Court)
A New AO Cannot Reopen an Old File Merely Because He Prefers a New View—Reassessment u/s 147 Quashed as Change of Opinion: Delhi HC
Summary: The Delhi High Court has held that where the assessee had furnished detailed replies concerning the issues during the original scrutiny assessment & the AO, after considering them, chose not to make any addition, his successor could not reopen the assessment merely because he disagreed with the view taken by his predecessor. The absence of a discussion in the original assessment order would not mean that the AO had failed to examine the issue. Once the assessment record disclosed that specific queries were raised & answered, reopening on the same material amounted to an impermissible change of opinion.
Facts of the Case
NTPC Ltd. filed its original return for AY 2007-08 on 30.10.2007, declaring income of ₹3,794.55 crore. A revised return was filed on 31.10.2008, declaring income of ₹2,904.74 crore.
The return was selected for scrutiny & an assessment order was passed u/s 143(3) on 27.02.2009. During the scrutiny proceedings, the AO examined various claims made by the assessee.
Subsequently, on 23.03.2012, the assessment was reopened by issuing notice u/s 148. The reassessment culminated in an order dated 28.03.2013 passed u/s 143(3) r/w s.147.
