Issue examined under original assessment proceeding: Whether re-opening in such case is justified
- The Assessee had filed a return declaring loss of Rs. 3.69 lakhs on 30.09.2012. Subsequently, the return was revised on 30.03.2014, whereby loss was declared at 1.91 lakhs. The case was selected for scrutiny and the assessment order was passed on 27.02.2015 under section 143(3) of the Income Tax Act assessing the total income at loss of Rs. 1.91 lakhs. After a period of 4 years, the Assessing Officer had issued a notice under section 148 to the Assessee on 22.03.2019 stating that the Assessing Officer had reasons to believe that Assessee’s income chargeable to tax for the assessment year 2012-13 had escaped assessment within the meaning of section 147 of the Act.
- While initially contention of the Assessee that such transfer of shares was a gift without consideration was accepted. However, subsequently, the above view was revised to treat the transfer of shares not as a gift and to tax the said transaction on the market value of the shares; this was nothing but change of opinion. It was quite apparent that Assessee had placed before the Assessing Officer during the assessment proceedings all the primary facts wherefrom the inference had been made. It was not open to the Assessing Officer to take a second view on the same set of facts treating the earlier view as erroneous.
- Hence, it was inferred that the re-assessment order was set-aside and quashed.