Provisions and requirements for reopening an assessment u/s 147 ...

Reopening income tax assessment requires fresh tangible materials, not mere change of opinion. Proper approvals mandatory.

Case Laws Income Tax

September 21, 2024

Provisions and requirements for reopening an assessment u/s 147 of the Income Tax Act, 1961, as amended. It emphasizes that mere 'change of opinion' without any new material on record is not sufficient for reopening an assessment. The key points are: (1) The Assessing Officer (AO) must have information suggesting that income chargeable to tax has escaped assessment and obtain prior approval from the specified authority to issue a notice u/s 148, unless an order u/s 148A(d) has been passed with prior approval. (2) The notice u/s 148 must precede the inquiry u/s 148A and comply with the time limit u/s 149. (3) Sanction from the specified authority is required before issuing notices u/ss 148 and 148A. (4) Fresh and tangible materials must be available with the AO, as per the explanations to Section 148, for reopening the assessment. (5) The test laid down in the Kelvinator case is still relevant and applicable even after the amendments. (6) Relevant court decisions, including Siemens Financial Services, Usha International, and Hexaware Technologies, have reiterated these principles. (7) If no fresh and tangible materials are available, the attempt to reopen the assessment completed u/s 143(3) woul.

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Provisions and requirements for reopening an assessment u/s 147 ...

Reopening income tax assessment requires fresh tangible materials, not mere change of opinion. Proper approvals mandatory.

Case Laws Income Tax

September 21, 2024

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