S. 147 : Reassessment-After the expiry of four years-Interest and property tax paid subsequently after slump sale-Claimed as deduction in the year of payment-Amount disclosed in tax audit report relying on case law-Reassessment notice for incorrect claim- Change of opinion-Reassessment notice was quashed. [S. 43B, 44AB, 148 , Art. 226]

In the Form No 3CD tax audit report the assessee has mentioned that the deduction on account of interest and tax liability was claimed u/s. 43B of the Act, based on the case law CIT v. Diza Electricals (1996) 222 ITR 156 (Ker.)(HC). The assessment was completed us. 143(3) of the Act. There was no discussion in the assessment order. The Reassessment notice was issued after the expiry of four years on the ground that the claim was incorrect which was discovered subsequent to the original assessment hence there is no change of opinion. Allowing the petition the Court held that the assessee has disclosed in the form 3CD which is mandatory obligation to furnish with its return of income the report of Auditor which was fulfilled by the assessee. The reassessment notice was quashed. Relied on 3i Infotech Ltd. v. ACIT (2010) 329 ITR 257 / 192 Taxman 137 (Bom)(HC), Ranbaxy Laboratories Ltd. v. Dy. CIT ( 2013) 351 ITR 23 / 30 taxmann.com 410 (Delhi)(HC). (WP. No. 951 of 2022 dt 21-2-2022) (AY. 2014-2015)
E-Land Apparel Ltd. v. ACIT (Bom.)(HC) www.itatonline.org

[CORAM : Hon’ble Justice Shri K.R. SHRIRAM & Hon’ble Justice Shri N.J. JAMADAR]