AIR 2018 SC 2113 ::2019 (2) ADR 200 (SC) ::AIR 2019 SC (Civil) 177 ::(2018) 2 Orissa LR 178

Supreme Court Of India

(From : Delhi)*

Hon'ble Judge(s): R. K. Agrawal, Mohan M. Shantanagoudar , JJ

Income-Tax Act (43 of 1961) , S.147— Reassessment proceedings - Initiation of, on ground of mere change of opinion of Assessing Officer - Not permissible. Language of S. 147 makes it clear that assessing officer certainly has power to re-assess any income which escaped assessment for any assessment year subject to provisions of Ss. 148 to 153. However, use of this power is conditional upon fact that assessing officer has some reason to believe that income has escaped assessment. Use of words 'reason to believe' in S. 147 has to be interpreted schematically as liberal interpretation of word would have consequence of conferring arbitrary powers on assessing officer who may even initiate such re-assessment proceedings merely on his change of opinion on basis of same facts and circumstances which has already been considered by him during original assessment proceedings. Such could not be intention of legislature. Said provision was incorporated in scheme of IT Act so as to empower Assessing Authorities to re-assess any income on ground which was not brought on record during original proceedings and escaped his knowledge; and said fact would have material bearing on outcome of relevant assessment order. S. 147 of IT Act does not allow re-assessment of income merely because of fact that assessing officer has change of opinion with regard to interpretation of law d....