Reassessment on the basis of mere change of Opinion

The Delhi Bench of the Income Tax Appellate Tribunal quashed reassessment proceedings initiated against A2Z Waste Management (Ranchi) Limited after holding that reopening of assessment based solely on a revenue audit objection, without any fresh tangible material, amounted to an impermissible change of opinion. 

The Tribunal held that the Assessing Officer merely revisited material already examined during the original scrutiny assessment under Section 143(3) and failed to independently form a valid “reason to believe” under Section 147. 

Relying upon Kelvinator of India Ltd., Simbhaoli Sugar Mills Ltd., FIS Global Business Solutions India Pvt. Ltd., and Network Programme India Ltd., the Tribunal declared the notice under Section 148 invalid and quashed the consequential reassessment order.