#change of opinion

ITAT Delhi quashes reassessment proceedings initiated beyond four years under Section 147 of the Income Tax Act, holding that mere change of opinion by the Assessing Officer does not justify reopening without evidence of the assessee’s failure to disclose material facts. The ruling reinforces taxpayer protection against arbitrary reassessments, particularly in cases involving bad debts disallowance.

ITAT Nagpur rules that a second reopening under Section 147 of the IT Act for mere bank verification amounts to a change of opinion, violating reassessment jurisdiction. The tribunal quashed the reassessment order, emphasizing that mechanical approval under Section 151 and incorrect invocation of Explanation 2(a) render the reopening void ab initio. Taxpayers can now challenge repeated reassessments lacking fresh tangible material.

ITAT Mumbai quashed reassessment proceedings under Section 147 of the Income Tax Act initiated after four years, ruling that the absence of new tangible material or failure to disclose material facts invalidates such actions. The decision reinforces statutory safeguards against arbitrary reopening of assessments, impacting taxpayers facing similar reassessment notices.