Adani Enterprise Ltd. v. ACIT (2018) 408 ITR 453/ (2019) 261 Taxman 64 (Guj) (HC)

S.147: Reassessment-After the expiry of four years- Method of accounting -All material facts disclosed and examined by assessing Officer – Notice is quashed [ S.145A, 148 ]

Allowing the petition the Court held that ; it was not open to the Assessing Officer to re-examine the entire issue which would be merely on a change of opinion. According to the documents on record the entire issue of the assessee’s treatment of the unutilised Cenvat credit in the valuation of closing stock had been scrutinised during the original assessment proceedings. The Assessing Officer was aware of the methodology adopted by the assessee. He had raised multiple queries and the assessee had replied to such queries. It was only after such scrutiny that the Assessing Officer had passed the order of assessment, in which, after recording detailed reasons, he had made limited disallowance in respect to the unutilised Cenvat credit.  Accordingly the notice of reassessment is bad in law .(AY.2011-12)