Mere change of opinion cannot be a ground for the re-opening of assessment

Last updated: 21 February 2023

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Quick Summary

The Bombay High Court has quashed a notice to reopen a tax assessment, stating that the tax authorities cannot reopen a case based solely on a change of opinion. The court found that no new information or material had been presented, which is a requirement for reopening an assessment under Section 147 of the Income Tax Act, especially when the reopening occurs more than four years after the original assessment. The decision reinforces that tax authorities need a valid 'reason to believe' based on new evidence, not just a different viewpoint.

Court :
Bombay High Court

Brief :
The Hon'ble Bombay High Court in Konark Life Spaces v. Assistant Commissioner of Income -Tax and Ors. [Writ Petition No. 2840 of 2022 dated February 10, 2023] has set aside the notice issued under Section 148 of the Income Tax Act, 1961 ("the IT Act") for re-opening of the assessment, on the grounds that the Revenue Department had neither sought any new information nor made a reference to new material on record. Held that, a change in opinion that does not satisfy the jurisdictional foundation under Section 147 of the IT Act.

Citation :
Writ Petition No. 2840 of 2022 dated February 10, 2023

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