HC quashes reassessment initiated on ‘change of opinion’ under new reassessment provisions

Case Details: Seema Gupta v. ITO - [2022] 140 taxmann.com 463 (Delhi)

Judiciary and Counsel Details

• • Manmohan & Ms Manmeet Pritam Singh Arora, Jj.
  • Ruchesh Sinha, Adv. for the Petitioner.
  • Ruchir Bhatia, Standing Counsel for the Respondent.

Facts of the Case

Assessee filed writ petition before the Delhi High Court against the order passed under section 148A(d) and consequential notice of reassessment under section 148. The assessee submitted the reassessment proceeding was clearly a case of ‘change of opinion’.

High Court Held

The Delhi High Court held that a perusal of the paper book revealed that the issue which the Assessing Officer (AO) sought to be reopened had been discussed, deliberated, and verified during original assessment proceedings. It seems that the AO had applied its mind and then passed the assessment order in favour of the assessee.

However, while passing the impugned order under Section 148A(d), the AO had wrongly concluded that the assessee had not disclosed the sale of the property and long-term capital gain in the ITR filed. Thus, the order was to be set aside and the matter was remanded back to AO for fresh consideration.