Omkara Diamonds Exports Private Limited Vs DCIT (ITAT Mumbai)
Summary: In this case, the Tribunal examined whether a second reassessment under Section 147 could be initiated on the same set of facts already scrutinized and concluded in earlier proceedings. The assessee’s case had originally been reopened based on alleged bogus purchases, leading to an addition that was progressively reduced through appellate stages and ultimately finalized at 1.75%. Despite this finality, the Assessing Officer initiated a second reassessment using identical material, this time proposing a 100% disallowance. The Tribunal held that such reopening was without jurisdiction as it was based on the same facts and constituted a mere change of opinion. It emphasized that reassessment requires fresh tangible material and cannot be used to review concluded matters. Further, once an issue has attained finality through appellate proceedings, reopening is barred under the proviso to Section 147. Accordingly, the reassessment was quashed as invalid in law.
Core Issue: The core issue was whether a second reassessment under section 147 can be validly initiated on the same set of material facts which had already been examined and adjudicated in earlier reassessment proceedings and attained finality, and whether such reopening amounts to a mere change of opinion and violates the doctrine of finality of litigation as well as the statutory bar under the proviso to section 147.
