Case Note & Summary
The petitioner, Knight Riders Sports Pvt. Ltd., which operates the Kolkata Knight Riders team in the Indian Premier League, challenged a notice dated 17th March 2023 under Section 148A(b) of the Income Tax Act, 1961, an order dated 30th March 2023 under Section 148A(d), and a reassessment notice dated 30th March 2023 under Section 148 of the Act for Assessment Year 2016-2017. The primary ground raised was that the reassessment was based on a change of opinion on the same set of facts that had already been examined during the original assessment. The court, after hearing the parties, held that reassessment cannot be initiated on a mere change of opinion and accordingly quashed the impugned notices and order. The petition was allowed with no order as to costs.
Headnote
A) Income Tax - Reassessment - Change of Opinion - Section 148, 148A of Income Tax Act, 1961 - The petitioner challenged reassessment notice and order under Sections 148A(b), 148A(d), and 148 of the Act on the ground that the reassessment was based on a change of opinion on the same facts already examined during original assessment - The court held that reassessment cannot be initiated on a mere change of opinion and quashed the impugned notices and order (Paras 4, 5).
Issue of Consideration
Whether a reassessment notice under Section 148 of the Income Tax Act, 1961 can be sustained when it is based on a change of opinion on the same set of facts already considered during the original assessment.
Final Decision
The court allowed the petition, quashing the notice dated 17th March 2023 under Section 148A(b), the order dated 30th March 2023 under Section 148A(d), and the reassessment notice dated 30th March 2023 under Section 148 of the Income Tax Act, 1961. Rule made absolute. No order as to costs.
Law Points
- Reassessment cannot be based on change of opinion
- Section 148A of Income Tax Act
- 1961
- Section 148 of Income Tax Act
