Reassessment on a mere change of opinion cannot proceed where reopening is based on alleged colourable transactions.Reopening of assessment under section 147 was discussed in the context of alleged ingenuine purchases routed through a colourable device. The Supreme Court declined to interfere with the High Court's view that the reassessment was based on a mere change of opinion by the Assessing Officer, so the taxpayer could not be subjected to further scrutiny on that basis. The special leave petition was dismissed.

Outcome: Delay condoned. Special Leave Petition dismissed and the interlocutory application(s), if any, disposed of.

Reopening of assessment u/s 147 - Reasons to believe - change of opinion - Ingenuine business transaction through a colourable device, made the purchases - HELD THAT:- We are not inclined to interfere with the impugned order [ 2025 (12) TMI 300 - GUJARAT HIGH COURT ] in exercise of our jurisdiction under Article 136 of the Constitution of India wherein held reopening of the assessment is nothing but a change of opinion by the AO and hence, the petitioner cannot be subjected to further scrutiny of reassessment. Special Leave Petition is, accordingly, dismissed and the accompanying interlocutory application(s), if any, stands disposed of. Income Tax Officer Ward 3 (1) (2) Ahmedabad Versus Rao Tradelink Private Limited.
Income Tax
2026 (5) TMI 1643 - SC Order - TMI
SUPREME COURT OF INDIA - SC (Judgement / Order / Decisions)
Dated:- 26-5-2026
Special Leave to Appeal (C) 19275/2026 [@ Diary No. 24881 of 2026]. - -
Income Tax
HON'BLE MR. JUSTICE PAMIDIGHANTAM SRI NARASIMHA AND HON'BLE MR. JUSTICE ALOK ARADHE For the Petitioner(s): Mr. N Venkataraman, A.S.G., Mr. Sudarshan Lamba, AOR, Mr. V Chandrashekhara Bharathi, Adv., Mr. Varad A Kilor, Adv., Mr. Bhuvan Kapoor, Adv., Mr. Rahul Arya, Adv. For the Respondent(s): None. ORDER 1. Delay condoned. 2. We are not inclined to interfere with the impugned order in exercise of our jurisdiction under Article 136 of the Constitution of India. 3. The Special Leave Petition is, accordingly, dismissed and the accompanying interlocutory application(s), if any, stands disposed of. =============
SUPREME COURT OF INDIA - SC Case laws, Decisions, Judgements, Orders

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2026 (5) TMI 1643