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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

M/S Ramani Timber Corporation, Trichy vs. ACIT-Circle-3(1), Trichy

The appeal stand partly allowed in terms of our above order

ITA 1476/CHNY/2023[2012-13]Status: DisposedITAT Chennai13 Mar 2024AY 2012-13

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.1476/Chny/2023 (िनधा*रण वष* / Assessment Year: 2012-13) M/S. Ramani Timber Corporation Acit बनाम 3/132A. Tanjore Road, Opp.Udc Circle-3(1) / Vs. Kattur, Trichy-620 019. Trichy. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaefr-9407-J (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Mrs. T.V. Muthu Abirami (Advocate)-Ld. Ar " थ"कीओरसे/Respondent By : Shri D. Hema Bhupal (Jcit)- Ld. Sr. Dr सुनवाईकीतारीख/Date Of Final Hearing : 13-03-2024 घोषणाकीतारीख /Date Of Pronouncement : 13-03-2024 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeal By Assessee For Assessment Year (Ay) 2012-13 Arises Out Of An Order Passed By Learned Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi [Cit(A)] On 17-10-2023 In The Matter Of An Assessment Framed By Ld. Assessing Officer [Ao] U/S. 143(3) R.W.S 147 Of The Act On 31-12-2018. This Is Second Round Of Litigation. Earlier, The Tribunal Vide Its Order In Ita No.125/Chny/2020 Dated 09-11-2021 Had Set Aside The Appeal To Ld. Cit(A) For Fresh Consideration. Pursuant To The Same, Impugned Order

For Appellant: Mrs. T.V. Muthu Abirami (Advocate)-Ld. ARFor Respondent: Shri D. Hema Bhupal (JCIT)- Ld. Sr. DR
Section 143(3)Section 147Section 234ASection 68

without any proper reason to believe that income has escaped assessment. b.The Ld AO erred in reopening the assessment is mere change of opinion and is without any tangible material to substantiate that income chargeable to tax which has escaped assessment. c.The Ld AO has incorrectly assumed jurisdiction by initiating ... assumption of reassessment jurisdiction. It has been submitted that reopening was beyond 4 years and the case has been reopened on mere change of opinion without there being any tangible material on record. To support the same, Ld. AR drew our attention to the reasons recorded