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“change of opinion”

ReassessmentSection 147Section 1472,292 judgments

The decision most relied on for change of opinion is CIT v. Kelvinator of India Ltd. (320 ITR 561), cited in 1,673 judgments on BharatTax.

Leading authorities on change of opinion

CIT v. Kelvinator of India Ltd.
320 ITR 561 · 2010 · Supreme Court
1,673
citing judgments

An Assessing Officer cannot initiate reassessment proceedings under Section 147 of the Income Tax Act based on a mere change of opinion. Reassessment is permissible only when there is fresh tangible material leading to the belief of income escapement, not merely a review of existing facts.

Hindustan Lever Ltd. v. R.B. Wadkar
268 ITR 332 · 2004 · High Court
695
citing judgments

The validity of reassessment proceedings initiated under Section 147, by issuing a notice under Section 148, must be judged solely on the reasons originally recorded by the Assessing Officer. These recorded reasons cannot be supplemented, improved upon, or modified at any later stage.

CIT v. Kelvinator of India Ltd.
256 ITR 1 · 2002 · High Court
439
citing judgments

An Assessing Officer cannot reopen an assessment under Section 147 based on a mere change of opinion regarding the same material available during the original assessment. Reopening requires fresh, tangible material or information that leads to a reason to believe income has escaped assessment.

T.S. Balaram ITO v. Volkart Bros.
82 ITR 50 · 1971 · Supreme Court
382
citing judgments

A mistake apparent from the record under Section 154 must be an obvious and patent error, not one that requires a long and elaborate process of reasoning or where two opinions are conceivable. Rectification under Section 154 is not permissible for re-examining issues already considered or requiring detailed re-computation.

CIT v. Orient Craft Ltd.
354 ITR 536 · 2013 · High Court
366
citing judgments

Reassessment of income, especially after a summary assessment under Section 143(1), requires the Assessing Officer to possess fresh, tangible material to form a reason to believe that income has escaped assessment; a mere reappraisal of existing records or a change of opinion without new material is not permissible.

CIT v. Foramer France
264 ITR 566 · 2003 · Supreme Court
253
citing judgments

Reassessment proceedings initiated under Section 147 beyond four years from the end of the relevant assessment year are invalid unless the assessee failed to disclose fully and truly all material facts necessary for assessment. Without such failure, the notice issued under Section 148 is time-barred and without jurisdiction.

Haryana Acrylic Manufacturing Company v. CIT
308 ITR 38 · 2009 · High Court
248
citing judgments

Reassessment proceedings are invalid if the reasons recorded for initiating action under section 148 are not served on the assessee within the limitation period prescribed by section 149. Furthermore, reassessment cannot be based on a mere change of opinion without tangible material, particularly when the assessee has made a full and true disclosure of material facts.

CIT v. SFIL Stock Broking Ltd.
325 ITR 285 · 2010 · High Court
243
citing judgments

Reassessment proceedings under Section 147 are invalid and void ab initio if initiated based on 'borrowed satisfaction' without the Assessing Officer's independent application of mind, or merely on documents already available on record without fresh tangible material.

Judgments citing change of opinion

ACIT, Central Circle - 3 (3), Chennai vs. M/S Land Marvel Homes, Chennai

In the result, appeal filed by the Revenue is allowed

ITA 1055/CHNY/2022[2012-2013]Status: DisposedITAT Chennai26 Jul 2024AY 2012-2013

Bench: Shri Aby T Varkey, Hon’Ble & Shri S. R. Raghunatha, Hon’Bleआयकरअपीलसं./Ita No.: 1055/Chny/2022 िनधा"रणवष" / Assessment Year: 2012-13 M/S. Land Marvel Homes, The Acit, V. 45-47, Old No. 22-23, Central Circle -3(3), 3Rd Floor, 1St Main Road, Chennai. Gandhi Nagar, Adyar, Chennai – 600 020. [Pan:Aabfl-4387-N] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ"क"ओरसे/Appellant By : Shri. V. Nandakumar, Cit ""यथ"क"ओरसे/Respondent By : Shri. T. Banusekar, Advocate & Shri. Yeshwanth Kumar, Ca सुनवाई क" तारीख/Date Of Hearing : 06.06.2024 घोषणा क" तारीख/Date Of Pronouncement : 26.07.2024 आदेश /O R D E R

For Appellant: Shri. V. Nandakumar, CITFor Respondent: Shri. T. Banusekar, Advocate &
Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 147Section 148

power to reassess. But reassessment has to be based on fulfillment of certain pre-conditions and if the concept of change of opinion is removed, as contended on behalf of the Department, then, in the garb of reopening the assessment, review would take place. One must treat the concept ... change of opinion as an in-built test to check abuse of power by the Assessing Officer. Hence, after 1st April, 1989, the Assessing Officer has power to reopen, provided there is tangible materialto come to the conclusion that there is escapement of income from assessment. Reasons must have

ITO-19(2)(4), Mumbai vs. Priti Bharat Parekh, Mumbai

In the result, the appeal of the revenue stand dismissed

ITA 447/MUM/2024[2014-15]Status: DisposedITAT Mumbai26 Jul 2024AY 2014-15

Bench: Shri Amarjit Singh & Shri Rahul Chaudhary, Ito-19(2)(4) Vs. Priti Bharat Parekh 507, 5Th Floor, Piramal 6C Landsend Chs 29 D Chambers, Parel, Dongersey Road, Mumbai – 400 012 Malabar Hill Maharashtra – 400006 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaepp1784C Appellant .. Respondent Appellant By : B.V. Jhaveri & Ms. Bhargavi Raval Respondent By : H.M. Bhatt Date Of Hearing 14.05.2024 Date Of Pronouncement 26.06.2024 आदेश / O R D E R Per Amarjit Singh (Am): The Present Appeal Filed By The Revenue Is Directed Against The Order Of Ld. Cit(Nfac) Of The Income Tax Act, 1961 For A.Y. 2014-15. The Revenue Has Raised The Following Grounds Before Us: “1. Whether On The Facts & Circumstances Of The Case & In Law, The Ld. Cit (A) Is Right In Quashing The Reopening By The Ao With The Opinion That The Reopening Is Without Jurisdiction & Bad In Law Without Appreciating That The Facts On Which The Reopening Was Done Are Not Available By The Ao At The Time Of Original Assessment 2. Whether On The Facts & Circumstances Of The Case & In Law, Ld. Cit (A) Is Right In Deleting The Addition Made On Account Of Penny Stock Transaction Without Appreciating The Facts That During The Course Of Investigation, It Was Found That The Scrips In Which The Assessee Traded Is Penny Stock Used For Providing Accommodation Entry Only In Form Of Bogus Ltcg & Stcg & Shared With The Jurisdiction Ao In The Fy 2020-21. 3. Whether On The Facts & Circumstances Of The Case & In Law, The Ld. Cit (A) Is Right In Deleting The Addition Made On Account Of Penny Stock Transaction Without Appreciating The Facts That The Assessee Has Entered

For Appellant: B.V. Jhaveri &For Respondent: H.M. Bhatt
Section 143(2)Section 143(3)Section 147Section 148

under: “6.21 Further, there are plethora of other judgments and decisions by the various courts of law on the point that mere change of opinion cannot be per se reason to reopen as under:- German Remedies Ltd vs. DCIT & Ors (2006) 285 ITR 26 (Bom.) Siemens Information System ... instant case doesn't fall in the category of oversight, inadvertence or a mistake committed by the AO, instead it becomes a change of opinion. Accordingly, I am of the view that the AO is not empowered to review the issue of LTCG claimed on the same set of facts