2022 (10) TMI 361 - SCH - Income Tax

Validity of reopening of assessment - assessment has been set aside by the High Court by specifically observing that the reassessment proceedings were on change of opinion and after taking into consideration the fact that at the time of original assessment under Section 143 specific queries were raised which were answered by the Assessee and, therefore, thereafter it was not open for the Revenue to re-open the assessment proceedings on the same ground and thereafter when the re-assessment proceedings have been set aside, it cannot be said that the High Court has committed any error. The Special Leave Petition stands dismissed. Pending application(s) shall stand disposed of.

Summary

The Supreme Court of India dismissed the Special Leave Petition as the re-opening of assessment was based on a change of opinion, which was not permissible after specific queries were answered during the original assessment under Section 143 of the Income-tax Act, 1961. The High Court set aside the reassessment proceedings.