COMMNR. OF INCOME TAX, DELHI vs. M/S. KELVINATOR OF INDIA LTD

C.A. No.-002009-002011 - 2003Supreme Court18 January 20105 pages
For Petitioner: B. V. BALARAM DASFor Respondent: BHARGAVA V. DESAI
AI SummaryDismissed

What did the Supreme Court hold?

The Supreme Court held that the concept of 'change of opinion' is an in-built test to prevent abuse of power by the Assessing Officer. Post-April 1, 1989, reopening requires 'tangible material' and a live link between the reasons and the belief of escaped income, not merely a change of opinion.

What were the facts?

The appeals concern the interpretation of Section 147 of the Income Tax Act, 1961, specifically whether the concept of 'change of opinion' was obliterated after its substitution by the Direct Tax Laws (Amendment) Act, 1987. The core issue is the scope of the Assessing Officer's power to reopen assessments.

What were the issues?

Whether the substitution of Section 147 of the Income Tax Act, 1961, by the Direct Tax Laws (Amendment) Act, 1987, removed the 'change of opinion' limitation on the Assessing Officer's power to reopen assessments.

Which sections of the Income-tax Act were involved?

Section 147

AI-generated summary — verify with the full judgment below

REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURI ICTION CIVIL APPEAL NOS.2009-2011 OF 2003 Commissioner of Income Tax, Delhi ...Appellant(s) Versus M/s. Kelvinator of India Limited ...Respondent(s) With Civil Appeal No.2520 of 2008 J U D G E M E N T S.H. KAPADIA,J. Heard learned counsel on both sides. A short question which arises for determination in this batch of civil appeals is, whether the concept of “change of opinion” stands obliterated with effect from 1st April, 1989, i.e., after substitution of Section 147 of the Income Tax Act, 1961 by Direct Tax Laws (Amendment) Act, 1987? To answer the above question, we need to note the changes undergone by Section 147 of the Income Tax Act, 1961 [for short, “the Act”]. Prior to Direct Tax Laws (Amendment) Act, 1987, Section 147 reads as under: ...2/- “Income escaping assessment.

147.

If-- [a] the Income-tax Officer has reason to believe that, by reason of the omission or failure on the part of an assessee to make a return under section 139 for any assessment year to the Income-tax Officer or to disclose fully and truly all material facts necessary for his

The order continues below.

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