Authority: High Court of Chhattisgarh at Bilaspur

Order Date: 24/09/2026

Case Overview

  • Parties: Appellant – Joint Commissioner of Income Tax, Range‑1, Bilaspur; Respondent – M/s Jindal Power Limited, Kharsia Road, Raigarh (PAN AABCJ4683J).
  • Appeal filed under Section 260A of the Income Tax Act, 1961 against the Tribunal order dated 25.06.2024 which had quashed the reassessment order dated 13.02.2015.
  • Background: Jindal Power filed e‑return for AY 2009‑10 reporting income of Rs 95,29,85,465. The Assessing Officer (AO) selected the case for scrutiny, issued a notice under Section 143(2), and on 28.12.2011 passed an assessment of Rs 19,19,78,85,663.
  • The AO later reopened the assessment under Section 147, after sanction under Section 151(1), enhancing taxable income to Rs 23,890,05,000 and raising a demand of Rs 1,93,13,18,000 (order dated 13.02.2015).
  • The assessee appealed to the CIT (Appeals), which dismissed the appeal; the matter proceeded to the Income Tax Appellate Tribunal, which quashed the reassessment on the ground that reopening was based on a mere change of opinion, not on fresh material.
  • The Revenue argued that the AO had identified undisclosed facts (100% depreciation on dam, additional depreciation under Sec 32(ii)(a), disallowance under Sec 14A, pre‑production interest) amounting to escaped income.
  • The Court examined extensive jurisprudence on Section 147, including decisions in Phool Chand Bajrang Lal, Ganga Saran & Sons, Kelvinator of India Ltd., State of Uttar Pradesh v. Aryaverth Chawl Udyog, and the recent Sanand Properties Pvt. Ltd. case, focusing on the “reason to believe” and “tangible material” requirements.
  • It held that the AO’s reasons were derived from material already considered during the original assessment and did not constitute fresh, tangible material; therefore, the reopening amounted to a prohibited change of opinion.

Final Outcome

  • The High Court dismissed the appeal filed by the Revenue, upheld the Tribunal’s order quashing the reassessment dated 13.02.2015, and ordered that no costs be awarded.

Topics: Tax Assessment, Section 147, Income Tax Reassessment