Rashtriya Chemicals and Fertilizers Ltd. v. ACIT (2022) 287 Taxman 36/113 CCH 275 (Bom.)(HC)

S. 147 : Reassessment-After the expiry of four years-Deduction in respect of expenditure on specified business-No failure to disclose material facts-Change of opinion-Reassessment notice is not valid [S. 35AD, 148, Art. 226]

Assessing Officer issued a notice  for reassessment.   In reasons recorded for reopening assessment it was stated that during scrutiny assessment assessee was allowed to claim entire deduction under section 35AD without examining conditions stipulated in provisions and assessee was not eligible to claim same and this irregular claim and allowance of deduction needed to be examined. On writ allowing the petition the Court held that  there was a failure on part of Assessing Officer even to disclose what was material fact that assessee failed to disclose.It was a case of change of opinion which was not permissible. Accordingly  notice issued under section 148 as well as order rejecting assessee’s objections required to be quashed and set aside.  (AY. 2012-13)