Tribunal quashes notice under section 148, allowing appeal. Assessing Officer's reasons not justifying reassessment.

The Tribunal quashed the notice under section 148 and allowed the appeal, finding that the reasons cited by the Assessing Officer did not justify the reassessment proceedings as they amounted to a change of opinion and did not indicate any income escaping assessment.

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Issues involved:
The legality of the initiation of the reassessment proceedings is challenged by the assessee.

Summary:
The appeal pertains to the initiation of reassessment proceedings by the Assessing Officer (AO) under section 148 for the assessment year 2002-03. The assessee had claimed a refund of Rs. 1,02,507 in its return of income, which was initially accepted by the AO under section 143(1). Subsequently, a notice under section 148 was issued, leading to the completion of assessment at an income of Rs. 3,84,422. The CIT(A) allowed relief, reducing the income to Rs. 2,52,235. The assessee contended that the initiation of proceedings under section 148 was improper as the reasons recorded did not establish a link between the income escaping assessment and undisclosed facts. The AO's reasons included discrepancies in contract receipts, shortage claims, application of a specific GP rate, and depreciation chart details. The Tribunal held that the reasons cited by the AO did not justify the reassessment proceedings, as they amounted to a change of opinion and did not indicate any income escaping assessment. Citing a previous decision, the Tribunal quashed the notice under section 148 and allowed the appeal.

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