The Bombay High Court at Goa quashed a notice issued under Section 148-A(b) of the Income Tax Act, 1961, to Shri Dilip Laximan Powar. The court found that the notice was based on an audit objection regarding cash deposits made during the demonetization period, which had already been examined and accepted in a prior assessment. The court held that this constituted a "change of opinion," which is impermissible under the law.

1. Background of the Case

   • Shri Dilip Laximan Powar, represented by his wife due to his paralysis, challenged a notice issued under Section 148-A(b) of the Income Tax Act. The notice was served to reassess income for the Assessment Year 2017-18, alleging that the income chargeable to tax had escaped assessment.

2. Initial Assessment and Audit Objection

   • The petitioner had filed returns and paid taxes regularly. An initial assessment was completed on 31.12.2019, accepting the income returned by the petitioner. However, an Internal Audit Party later raised objections regarding cash deposits during demonetization, which led to the issuance of the reassessment notice.

3. Contention of the Petitioner

   • The petitioner argued that the reassessment notice was issued after the mandated period of three years and was based solely on an internal audit observation without any new facts, which amounted to a change of opinion.

4. Respondent's Argument

   • The Income Tax Department contended that the notice was validly issued based on specific information provided by the Internal Audit Party and that it was within the scope of Section 148, as amended in 2021.

5. Court's Analysis

   • The court examined the provisions of Section 148 and relied on the Supreme Court's decision in Mangalam Publications v. Commissioner of Income Tax. It determined that the audit objection amounted to a review of an already settled issue and thus fell under the category of a change of opinion.

6. Judgment

   • The court quashed the notice, stating that reassessment based on a change of opinion is not permissible. The notice was deemed invalid, and the petition was allowed in favor of Shri Dilip Laximan Powar.