2018 (2) TMI 1802 - HC - Income Tax

Reopening of assessment - valuation of closing stock - ITAT affirmed the CIT s opinion but held that the re-assessment was unwarranted - Held that - This Court is of the opinion that these arguments are untenable in view of the subsequent decision of the Supreme Court in CIT Vs. Kelvinator of India Ltd 2010 (1) TMI 11 - SUPREME COURT OF INDIA with regard to the permissible framework within which the Revenue Authority can issue re-assessment notice. Nevertheless, the Court has also considered all the relevant previous decisions especially in the light of the amendments to Section 147 which has also inserted Explanation 1. No question of law

Summary

The High Court dismissed the Revenue's appeal against the ITAT's decision that the opening of the assessment was unwarranted. The assessment was based solely on an audit objection regarding stock evaluation without tangible material. The ITAT found the reassessment unwarranted, citing a Supreme Court judgment. The High Court considered relevant previous decisions and amendments to Section 147, concluding that no question of law arose.