Court Invalidates Late Tax Reassessment on Cyprus NCDs, Citing Change of Opinion & India-Cyprus DTAA Misinterpretation.

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....Reopening of Assessment u/s 147 - investment in NCDs unexplained - difference between accrual of income and receipt of income - reopening after the expiry of four years - Petitioner is a tax resident of Cyprus - The Bombay High Court quashed the reopening notice dated 30th March 2021 and subsequent orders, holding that the reopening of the assessment was based on a mere change of opinion, which is not a valid ground for reassessment. The Court emphasized that all material facts were disclosed by the Petitioner during the original assessment proceedings, and any reassessment after four years is impermissible without a failure to disclose such facts. Furthermore, the Court upheld the Petitioner's argument that under the India-Cyprus DTAA, interest income is taxable only upon receipt, which was not adequately addressed by the Respondents.....