COMMISSIONER OF INCOME TAX Vs. LALIT BAGAI

JUDGEMENT

(1.) The Revenue is in appeal against an order dated 9th March 2018 passed by the Income Tax Appellate Tribunal ("ITAT") in ITA No.5833/Del/2015 for Assessment Year ("AY") 2006-07.

(2.) The issue sought to be urged by the Revenue is whether the ITAT was justified in quashing the reassessment proceedings under Section 147 of the Act on the ground of change of opinion on the applicability of Section 40 (a) (ia) of the Act even when the Assessing Officer ("AO") had not expressed any opinion on the applicability of such provision during the original assessment proceedings under Section 143(3) of the Act?

(3.) The admitted factual position is that for the AY in question the return of income was filed by the Assessee on 31st October 2006 declaring an income of Rs.1,02,35,913/-. The return was picked up for scrutiny and notice to the Assessee was issued by the Assessing Officer ("AO") under Section 143(2) and 142(1) of the Act on 19th October 2007 along with a detailed questionnaire to the assessee.