Mere change of opinion does not provide jurisdiction for re-opening of assessment

Last updated: 28 February 2023

Save Share

Quick Summary

The Bombay High Court has ruled that the Income Tax Department cannot reopen past tax assessments simply because they have a 'change of opinion'. In the case of Survival Technologies Pvt. Ltd., the court found that the department lacked sufficient tangible material to justify reopening the assessment for the 2015-16 financial year. The court emphasised that reopening an assessment, especially after four years, requires proof of the assessee failing to disclose material facts fully and truly, not just a new perspective from the tax authority.

Court :
Bombay High Court

Brief :
The Hon'ble Bombay High Court in Survival Technologies Pvt. Ltd. v. the Deputy Commissioner of Income Tax [Writ Petition No. 3035 of 2022 dated February 20, 2023] has set aside the notice issued under Section 148 of the Income Tax Act ("the IT Act") seeking to reopen the assessment of the assessee and the consequential order rejecting the objections of the assessee for reopening such assessment proceedings, on the grounds that the notice was issued without any tangible material with the Revenue Department. Held that, mere change of opinion does not provide jurisdiction to the Revenue Department to re-open assessment.

Citation :
Writ Petition No. 3035 of 2022 dated February 20, 2023

Daily Limit Reached

You have reached your daily limit of 2 Free Judgements

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Judgements Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience. 07941056694

320 Views Comment Share Income Tax Report

Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

View Judgements

Comments