Reopening of assessment on Mere audit opinion not valid

Mobis India Limited Vs DCIT (Madras High Court) Hon’ble Supreme Court way back in 1979, in Indian and Eastern News Paper Society, put the issue beyond any pale of doubt by holding that the opinion on law rendered by an audit party cannot be the basis for exercising the power of reassessment. Evaluation of law and its bearing on the assessment must be directly and solely done by the assessing officer. The audit party can furnish information which leads the assessing officer to realise the need for reassessment. In other words, the information / material provided by the audit or any extern...