S. 147 : Reassessment-With in four years-Change of opinion-No fresh tangible material-Reassessment notice and order disposing the objection is quashed. [S. 35AC, 80G, 143(3), 148, Art. 226]
The petitioner filed its return of income for AY 2016-17 on 26 November 2016, declaring Rs. 26,36,01,64,390 as total income. The return was selected for scrutiny, and the petitioner was asked to furnish details regarding deductions under Sections 35AC and 80G through multiple notices. The petitioner submitted replies on 30 July 2018 and 03 August 2018, providing explanations and supporting documents. The assessment order under Section 143(3) was passed on 28 December 2018, allowing the claims under Sections 35AC and 80G. On 31 March 2021, a reassessment notice under Section 148 was issued, stating that CSR expenses of Rs. 14,89,06,832 (S. 35AC) and Rs. 3,11,00,000 ( S. 80G) were claimed under two different heads, amounting to a double deduction of Rs. 18,00,06,832. The petitioner filed objections, which were rejected on 30 November 2021. Aggrieved, the petitioner filed a writ petition. The court held that no fresh tangible material had come to the AO’s knowledge after the original assessment. The reopening was based on a mere re-examination of the same material, which is impermissible under the law. Relying on Castrol India Ltd. v. DCIT, [2024] 161 taxmann.com 18 (Bom)(HC) the court reiterated that reopening cannot be based on a mere change of opinion. The reassessment notice and consequential orders were set aside, and the petition is allowed. (WP No. 1530/2022, dt. 18.02.2025) (AY. 2016-17)
Lupin Limited v. Dy CIT 3(4) (Bom)(HC). www.itatonline.org
[Coram : Hon’ble Shri Justice M.S. Sonak & Hon’ble Shri Justice Jitendra Jain]