case law

AO could not

The Income-tax Act, 1961 does not confer jurisdiction on the Assessing Officer to change its opinion on the interpretation of a particular provision earlier adopted by it. If the issue had already been considered earlier during the course of scrutiny assessment and the Assessing Officer had come to a conclusion that no disallowance of interest paid by the assessee is required, even though loans had been given to sister concern without any interest, the same issue cannot be the basis of reassessment, merely because the revenue audit team takes a different view.

This above one is the extract from a case law basically dealing with change of Assessing Officer opinion and issue of Notice under Section 148. Where it was held that Assessing Officer cannot change its opinion.

Notice so issued is without any legal backing and is futile.