During the original assessment, both the questions raised by AO in reassessment notice, were already examined by AO through a specific queries raised in this respect. Therefore, reassessment being based on mere change of opinion was invalid.
FULL TEXT OF THE HIGH COURT ORDER / JUDGMENT
The Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal dated 18-11-2016 raising following question of our consideration :–
“Whether the Appellate Tribunal has erred in law and on facts in quashing the reopening of assessment?”
2. The issue pertains to the validity of reopening of assessment.
For the assessment year 2007-08 in case of the respondent-assessee, original scrutiny assessment was framed after which to reopen the assessment, the assessing officer issued a notice within four years from the end of the relevant assessment year.
In the reasons recorded, he had indicated two grounds. One was with respect to treating certain income as business income instead of capital gain. Second was with respect to disallowance under section 14A of the Act. The Tribunal, in the impugned judgment, noticed that during the original assessment, both these questions were examined by the assessing officer for which, specific queries were raised. That being the position, we see no error in the view of the Tribunal that reassessment would be based on mere change of opinion.
3. Tax Appeal is therefore, dismissed.