M/s.
Marks Shipping Pvt. Ltd
The AO has the power to reopen the
assessment,but such reassessment cannot be initiated on a mere change of
opinion to merely re-examine an issue on the basis of information or material
which was already available to the AO at the time of the completion of the
original assessment.“Reason to believe” could never be an outcome of
a change of opinion. Consequently, before taking any action,he is required to
substantiate his satisfaction in the reasons recorded by him. If such reasons
recorded disclose a mere change of opinion the assessment proceedings cannot be
initiated. Once the AO has made an assessment on the
primary facts and documents placed before him, he cannot at another point of
time form another opinion on the same primary facts and arrive at a conclusion
that he had committed an error or come to a conclusion that he has now reason
to believe that income had escaped assessment and reopen the assessment
proceedings. ix.Further, on the basis of an audit report, notice under section
148 cannot be issued as such audit report cannot be regarded as “information”
within the meaning of 147
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