Case Law Details
Chordia Buildcon Pvt. Ltd. Vs DCIT (ITAT Jaipur)
The issue under consideration is whether the action taken by the AO u/s 147 r.w.s 148 is justified in law?
The case of assessee was originally selected for scrutiny and a detailed questionnarie was issued alongwith notice u/s 142(1). The AO asked specific queries with regard to subject compensation debited in P&L Account. After considering the reply of the assessee, no disallowance of compensation was made and revenue expenditure was allowed by the AO in the original assessment proceedings completed u/s 143(3). Thereafter, after lapse of four years, notice u/s 148 was issued. It is relevant to note that case was reopened based upon the assessment records and submission filed during the course of original assessment proceedings and the same is evident from the reasons recorded, which is reproduced in para 2 of the reassessment order passed u/s 147 of the Act.
In the instant case, ITAT find that the reopening of the completed assessment u/s 143(3) is without bringing any fresh material on record and where the material relied upon has already been examined by the Assessing officer during the original assessment proceedings, it clearly amounts to change of opinion which as per settled jurisprudence, as ITAT have noticed supra, cannot be sustained and notice so issued u/s 148 seeking to reopen the assessment is liable to be set-aside.
FULL TEXT OF THE ITAT JUDGEMENT
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
