In Brief
M/s Mangalam Publications, a news and periodicals publisher, faced reassessment for three assessment years (1990-93) after initially concluded assessments. The assessee could not file regular books of account, having been seized in a tax search, but provided alternative financial details. The revenue reopened assessments based on comparing capital growth between two balance sheets, claiming income had escaped assessment. The Supreme Court held that a return without regular books is defective but not invalid unless the assessing officer issues notice to rectify. Since no such notice was issued, the original returns were valid. Reassessment based on subjective reanalysis of previously available facts constitutes impermissible change of opinion. Without fresh, reliable material, the assessing officer lacked proper basis to reopen. The Court restored the Tribunal's decision setting aside the reassessment and dismissed the revenue's appeals.
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