C.I.T New Delhi vs Orient Craft Ltd. on 20 January, 2014
11.11 The Ld. A.R. further submitted that with reference to
Assessment years 2015-16 and 2016-17, the law relating to
"change of Opinion" will equally apply in light of the judgment of
Hon'ble High Court of Delhi in the case of CIT vs. Orient Craft
Ltd.: 354 ITR 536, wherein the reasons for reassessment was
that AO reached on a belief that there was escapement of income
on going through the return of income filed by assessee after he
accepted return u/s. 143(1) of the Act without scrutiny, and
nothing more. On these facts, it was held by the Hon'ble Delhi
High Court that it was nothing but review of earlier proceedings
and abuse of power by AO. It was further held that since there
was no whisper in reasons recorded, of any tangible material
which came into possession of the AO subsequent to the issue of
intimation, the same was an arbitrary exercise of power conferred
under section 147 of the Act.