Reopening beyond four years and change of opinion challenged, with ad-interim protection granted against further reassessment action.

Reopening of assessment under section 148 beyond four years was challenged on the basis that the recorded reasons relied on material already on record, the deduction issue under section 80IA had been examined in scrutiny assessment, and the proposed reassessment reflected a change of opinion. On that showing, the Court issued notice and granted ad-interim protection, restraining further action under the impugned notice pending consideration.

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Issues: Whether notice for reopening the assessment under section 148 of the Income-tax Act, 1961, for assessment year 2012-13, issued beyond four years from the end of the relevant assessment year, was liable to be interdicted at the interim stage on the grounds of absence of failure to disclose material facts and change of opinion.

Analysis: The petitioner challenged the reopening on the basis that the reasons recorded relied on material already on record, that the issue concerning deduction under section 80IA had been examined during scrutiny assessment and accepted, and that the proposed reassessment amounted to a mere change of opinion. The Court found the submissions sufficient to issue notice and protect the petitioner pending further consideration.

Outcome: Notice issued returnable on 03.12.2019 and the respondent was restrained by way of ad-interim relief from proceeding further pursuant to the impugned notice.

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