Issue examined under original assessment proceeding: Whether re-opening in such case is justified
- Scrutiny assessment was done under section 143(3) of the Income-tax Act on 14.12.2011 determining total income at Rs.2.27 lakhs wherein deduction under section 80-IB(10) was allowed at Rs.10.79 crore. There was change of jurisdiction and change of incumbent. The new Assessing Officer initiated reassessment proceedings by means of a notice under section 148 dated 10.03.2014.
- Reliance was placed on the decision of the Hon’ble Supreme Court in the case of CIT vs. Kelvinator of India Ltd., wherein it was concluded that in the absence of fresh information/ material coming to the possession of the Assessing Officer, reopening was not permissible.
- Hence, it was inferred that the re-assessment proceedings were liable to be quashed.