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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

Sree Ganesh Gears Private Limited, Mysuru vs. Deputy Commissioner of Income Tax, Circle-1(2), Mysuru

In the result, the appeal filed by assessee stands allowed for statistical purposes

ITA 824/BANG/2024[2006-07]Status: DisposedITAT Bangalore07 Jun 2024AY 2006-07

Bench: Smt. Beena Pillai & Shri. Laxmi Prasad Sahuassessment Year : 2006-07 M/S. Sree Ganesh Gears The Deputy Pvt. Ltd., Commissioner Of Plot No. 106, Belegola Income Tax, Industrial Area, Circle – 1(2), Mysuru – 570 016. Mysuru. Vs. Pan: Aaecs8142C Appellant Respondent : Shri Ajith .V, Advocate I/B Shri Assessee By B.S. Balachandran, Advocate : Shri Ganesh R Gale, Standing Revenue By Counsel For Department Date Of Hearing : 30-05-2024 Date Of Pronouncement : 07-06-2024 Order Per Beena Pillaipresent Appeal Has Been Filed By The Assessee Against Order Dated 05/03/2024 Passed By Nfac, Delhi For A.Y. 2006-07. “Legal Grounds: 1. The Order Dated 04 March 2024 Passed By The Commissioner Of Income-Tax (Appeals), National Faceless Appeal Centre Is Bad & Erroneous & Against The Facts & Circumstances Of The Case; 2. The Learned Cit(A) Erred In Law & On Facts In Dismissing The Appeal Of The Appellant On The Grounds Of Limitation Without Appreciating That The Appeal Was Filed Within The Time Limit Provided By The Hon'Ble High Court

For Respondent: Shri Ajith .V, Advocate i/b Shri
Section 143(2)Section 143(3)Section 147Section 148Section 154Section 43B

section 147 of the Act; 4. The learned CIT(A) erred in upholding the reassessment proceedings initiated by the Ld AO based on change of opinion and without having any tangible material which shows escapement of income, thereby violating the provisions of section 147 of the Act; 5. The learned

DCIT Corporate Circle 4(1), Chennai vs. Hemalatha Rajan, Chennai

In the result, all three appeals filed by the Revenue are dismissed

ITA 493/CHNY/2020[2009-10]Status: DisposedITAT Chennai05 Jun 2024AY 2009-10

Bench: Shri S.S. Viswanethra Ravi & Shri Amitabh Shuklaआयकर अपील सं./I.T.A. No.11/Chny/2020 िनधा"रण वष"/Assessment Year: 2009-10 The Assistant Commissioner Of Vs. Shri Karuppusamy Pandiarajan, Income Tax, Non Corporate Circle 7, No. 61, Tas Enclave, C3, Golden Kings Room No. 608, 6Th Floor, 121, Court, 10Th Main Road, Santhi Colony, N.H. Road, Chennai 600 034. Anna Nagar West Extn., Chennai 40. [Pan: Aadpp4895M] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.492 & 493/Chny/2020 िनधा"रण वष"/Assessment Year: 2009-10 The Deputy Commissioner Of Vs. Smt. Hemalatha Rajan, 3Rd Floor, Golden Kings Court, Income Tax, Corporate Circle 3(2), Chennai 600 034. No. 61, Tas Enclave, Santhi Colony, 10Th Main Road, Anna Nagar West Extn., Chennai 40. [Pan: Aatph2012G] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri S.P. Chidambaram, Advocate ""थ" की ओर से/Respondent By : Shri Ar V Sreenivasan, Addl. Cit सुनवाई की तारीख/ Date Of Hearing : 28.05.2024 घोषणा की तारीख /Date Of Pronouncement : 05.06.2024 आदेश /O R D E R Per S.S. Viswanethra Ravi: The Appeal In Ita No. 11/Chny/2020 Filed By The Revenue Is Directed Against The Order Dated 16.10.2019 Passed By The Ld. Cit(A)-8

For Appellant: Shri S.P. Chidambaram, AdvocateFor Respondent: Shri AR V Sreenivasan, Addl. CIT
Section 147Section 271(1)(c)

relating to only one issue challenging the action of the ld. CIT(A) in declaring the reassessment invalid on account of change of opinion. 3 I.T.A. Nos.11, 492 & 493/Chny/20 6. The ld. DR Shri AR V Sreenivasan, Addl. CIT submits that the base for initiating reassessment is the conditions concerning ... untruthfulness of those facts. He argued that the Hon’ble Supreme Court in such situations, held it is not a case of mere change of opinion or drawing of a different inference from the same facts as were earlier available but acting on fresh information. He submits that

DCIT Corporate Circle 4(1), Chennai vs. Hemalatha Rajan, Chennai

In the result, all three appeals filed by the Revenue are dismissed

ITA 492/CHNY/2020[2009-10]Status: DisposedITAT Chennai05 Jun 2024AY 2009-10

Bench: Shri S.S. Viswanethra Ravi & Shri Amitabh Shuklaआयकर अपील सं./I.T.A. No.11/Chny/2020 िनधा"रण वष"/Assessment Year: 2009-10 The Assistant Commissioner Of Vs. Shri Karuppusamy Pandiarajan, Income Tax, Non Corporate Circle 7, No. 61, Tas Enclave, C3, Golden Kings Room No. 608, 6Th Floor, 121, Court, 10Th Main Road, Santhi Colony, N.H. Road, Chennai 600 034. Anna Nagar West Extn., Chennai 40. [Pan: Aadpp4895M] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.492 & 493/Chny/2020 िनधा"रण वष"/Assessment Year: 2009-10 The Deputy Commissioner Of Vs. Smt. Hemalatha Rajan, 3Rd Floor, Golden Kings Court, Income Tax, Corporate Circle 3(2), Chennai 600 034. No. 61, Tas Enclave, Santhi Colony, 10Th Main Road, Anna Nagar West Extn., Chennai 40. [Pan: Aatph2012G] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri S.P. Chidambaram, Advocate ""थ" की ओर से/Respondent By : Shri Ar V Sreenivasan, Addl. Cit सुनवाई की तारीख/ Date Of Hearing : 28.05.2024 घोषणा की तारीख /Date Of Pronouncement : 05.06.2024 आदेश /O R D E R Per S.S. Viswanethra Ravi: The Appeal In Ita No. 11/Chny/2020 Filed By The Revenue Is Directed Against The Order Dated 16.10.2019 Passed By The Ld. Cit(A)-8

For Appellant: Shri S.P. Chidambaram, AdvocateFor Respondent: Shri AR V Sreenivasan, Addl. CIT
Section 147Section 271(1)(c)

relating to only one issue challenging the action of the ld. CIT(A) in declaring the reassessment invalid on account of change of opinion. 3 I.T.A. Nos.11, 492 & 493/Chny/20 6. The ld. DR Shri AR V Sreenivasan, Addl. CIT submits that the base for initiating reassessment is the conditions concerning ... untruthfulness of those facts. He argued that the Hon’ble Supreme Court in such situations, held it is not a case of mere change of opinion or drawing of a different inference from the same facts as were earlier available but acting on fresh information. He submits that

ACIT Non Corporate Circle-7, Chennai vs. Karuppusamy Pandiarajan, Chennai

In the result, all three appeals filed by the Revenue are dismissed

ITA 11/CHNY/2020[2009-10]Status: DisposedITAT Chennai05 Jun 2024AY 2009-10

Bench: Shri S.S. Viswanethra Ravi & Shri Amitabh Shuklaआयकर अपील सं./I.T.A. No.11/Chny/2020 िनधा"रण वष"/Assessment Year: 2009-10 The Assistant Commissioner Of Vs. Shri Karuppusamy Pandiarajan, Income Tax, Non Corporate Circle 7, No. 61, Tas Enclave, C3, Golden Kings Room No. 608, 6Th Floor, 121, Court, 10Th Main Road, Santhi Colony, N.H. Road, Chennai 600 034. Anna Nagar West Extn., Chennai 40. [Pan: Aadpp4895M] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.492 & 493/Chny/2020 िनधा"रण वष"/Assessment Year: 2009-10 The Deputy Commissioner Of Vs. Smt. Hemalatha Rajan, 3Rd Floor, Golden Kings Court, Income Tax, Corporate Circle 3(2), Chennai 600 034. No. 61, Tas Enclave, Santhi Colony, 10Th Main Road, Anna Nagar West Extn., Chennai 40. [Pan: Aatph2012G] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri S.P. Chidambaram, Advocate ""थ" की ओर से/Respondent By : Shri Ar V Sreenivasan, Addl. Cit सुनवाई की तारीख/ Date Of Hearing : 28.05.2024 घोषणा की तारीख /Date Of Pronouncement : 05.06.2024 आदेश /O R D E R Per S.S. Viswanethra Ravi: The Appeal In Ita No. 11/Chny/2020 Filed By The Revenue Is Directed Against The Order Dated 16.10.2019 Passed By The Ld. Cit(A)-8

For Appellant: Shri S.P. Chidambaram, AdvocateFor Respondent: Shri AR V Sreenivasan, Addl. CIT
Section 147Section 271(1)(c)

relating to only one issue challenging the action of the ld. CIT(A) in declaring the reassessment invalid on account of change of opinion. 3 I.T.A. Nos.11, 492 & 493/Chny/20 6. The ld. DR Shri AR V Sreenivasan, Addl. CIT submits that the base for initiating reassessment is the conditions concerning ... untruthfulness of those facts. He argued that the Hon’ble Supreme Court in such situations, held it is not a case of mere change of opinion or drawing of a different inference from the same facts as were earlier available but acting on fresh information. He submits that

The ACIT, Circle-5, Ahmedabad vs. M/S. Jubilee Tradelink Pvt. Ltd., Ahmedabad

In the result, the appeal of the Department is dismissed

ITA 806/AHD/2016[2008-09]Status: DisposedITAT Ahmedabad29 May 2024AY 2008-09

Bench: Mrs. Annapurna Gupta & Shri Siddhartha Nautiyalिनधा"रणवष"/Assessment Year: 2008-09 Vs. M/S. Jubilee Tradelink Pvt. Ltd., The Acit, 9B, Bansidhar Apartments, Circle-5, Gyanganga Classes, Ahmedabad Jawaharnagar, Vasna, Ahmedabad Pan : Aabcj 0614 P अपीलाथ" अपीलाथ"/ (Appellant) अपीलाथ" अपीलाथ" "" "" यथ" "" "" यथ" यथ"/ (Respondent) यथ" Assessee By : Shri S.N. Soparkar, Sr. Advocate & Shri Parin Shah, Ar Revenue By : Shri Ravindra, Sr Dr तारीख/Date Of Hearing : 08.05.2024 सुनवाई क" क" तारीख सुनवाई सुनवाई सुनवाई क" क" तारीख तारीख घोषणा क" क" तारीख तारीख /Date Of Pronouncement: 29.05.2024 घोषणा घोषणा घोषणा क" क" तारीख तारीख आदेश आदेश/O R D E R आदेश आदेश Per Siddhartha Nautiyal: This Appeal Has Been Filed By The Department Against The Order Of The Learned Commissioner Of Income-Tax (Appeals)-9, Ahmedabad [Hereinafter Referred To As "Cit(A)" For Short] Dated 05.01.2016, Passed Under Section 250(6) Of The Income Tax Act, 1961 [Hereinafter Referred To As "The Act" For Short], For The Assessment Year (Ay) 2008-09. 2. The Department Has Taken The Following Grounds Of Appeal:- “1. The Ld. Cit(A) Has Erred In Law & On Facts In Holding The Reassessment Proceedings As Void. 2. The Ld. Cit(A) Has Erred In Law & On Facts By Not Appreciating That The Assessment Was Reopened Within Four Years From The Relevant Assessment Year & The Issue Decided In Reassessment Proceedings Was Not Dealt With During Original Assessment Proceedings..

For Appellant: Shri S.N. Soparkar, Sr. Advocate &For Respondent: Shri Ravindra, Sr DR
Section 147Section 250(6)

objection of the assessee with regards to proceedings under Section 147 of the Act were that proceedings were initiated by way of change of opinion, without bringing on any new facts on record, which were not existing at the time of original assessment. According to the assessee it had disclosed ... these shares and the quantity as well. Therefore, I am of the considered view that the assessment proceedings have been reopened due to change of opinion. Therefore, the action of the A.O to reopen the assessment proceedings on the basis of change of opinion is not justified and is void