2016 (6) TMI 110

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....2005-06 on 30.10.2005 disclosing a total income of Rs. 4,79,830/-. The return filed by the assessee was processed under Section 143 (1) of the Act on 03.02.2006. The assessee voluntarily filed a revised return of income on 28.08.2006 admitting long-term capital gains of Rs. 34,21,819/- on the sale of land. The case was picked up for scrutiny, and assessment under Section 143 (3) of the Act was completed on 14.12.2007 and some expenditure claimed by the assessee was disallowed. The assessment order dated 14.12.2007 disclosed that the assessing officer had considered this issue, of capital gains on the sale of land, in passing the assessment order under Section 143 (3) of the Act on 14.12.2007. Thereafter, on 04.03.2011, the assessing officer....

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....icer has now been conferred the power to reopen the assessment if he has reason to believe that income has escaped assessment, this does not imply that the assessing officer can reopen an assessment on mere change of opinion; the concept of change of opinion must be treated as an in-built test to check abuse of power; re-assessment proceedings are invalid in case the assessment order itself records that the issue was raised, and decided in favour of the assessee; re-assessment proceedings, in the present case, is hit by the principle of 'change of opinion'; and, therefore, the appeal of the Revenue must be dismissed. Sri B.Narasimha Sarma, learned Senior Standing Counsel for the Income Tax Department, would submit that the assessment can....

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....of four years from the end of the assessment year. As the assessment year , in the present case, is 2005-06 the four year period, prescribed under the proviso to Section 147, expired by 31.03.2010. The proviso to Section 147 of the Act enables exercise of jurisdiction under Section 147 beyond four years only in cases where (a) any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under Section 139 of the Act or in response to a notice under Section 142 or Section 148 of the Act; or (b) the assessee has not disclosed fully and truly all material facts necessary for that assessment. The second limb of the proviso, of the assessee failing to make a ret....