R P Foam Home (P) Ltd. Vs ACIT (Delhi High Court)
Delhi High Court held that the assessment of tax under Section 143(1) of the Income Tax Act is a self-assessment and in a strict sense cannot be stated as assessment framed by the AO for the purpose of reopening of assessment under section 147.
Facts- The petitioner has filed the present petition impugning a notice dated 27.03.2018 issued under Section 148 of the Income Tax Act, 1961 (hereafter the Act) for reopening the petitioner’s assessment for the Assessment Year 2011-12.
Conclusion- This Court in Indu Lata Rangwala v. Deputy Commissioner of Income Tax has held that where the return initially filed is processed under Section 143 (1) of the Act, and an intimation is sent to an Assessee, it is not an ‘assessment’ in the strict sense of the term for the purposes of Section 147 of the Act. In other words, in such event, there is no occasion for the AO to form an opinion after examining the documents enclosed with the return whether in the form of balance sheet, audited accounts, tax audit report etc.
Held that the assessment of tax under Section 143(1) of the Act is a self-assessment and in a strict sense cannot be stated as assessment framed by the AO. Thus, the contention that all material including explanation of the petitioner was available with the Assessing Officer at the time of framing of the assessment for the Assessment Year 2011-12 and the impugned notice is occasioned by a change in opinion, is unmerited.
