*Amber, Bhubaneswar Vs DCIT, Circle 2(1) & Others*
*Forum-Orissa High Court*
*Date -5th July 2021*
*Sub-Whether reassessment in pursuance of information in the course of search amounts to change of opinion and whether not affording cross examination at the objection stage amounts to violation of natural justice.*

In the above case the Orissa High Court CJ bench was considering a matter where after the completion of original assessment, the AO reopened the assessment in pursuance of information received during the course of search in Calcutta in Banka Group of cases where it was found that the said group was engaged in paper/shell companies and providing accommodation entries including to the appellant herein. The appellant contended that the reassessment amounted to change of opinion as all materials were provided during the course of original assessment. However, the Court noted that the reasons which were recorded for reassessment were not based on the same material which were offered during the course of original assessment and thus it could not be said that opinion was formed during the course of original assessment on the said information. Moreover, the court also refused to accept the contention of the appellant that the non supply of copy of statement of Mr Banka or not providing opportunity to cross examine at the stage of objections vitiates the reassessment proceedings as this can be provided during the course of reassessment. Thus the writ was dismissed.

In relation to the old law, this judgement will provide insight into similar cases where on account of information in the case of other parties, reassessment is done.

Ramesh Patodia
15-07-2021