The Delhi High Court has ruled that the Revenue can reopen the assessment proceedings on change of opinion that the income of the assessee has escaped assessment. Such re-opening of the assessment by the Income Tax department is legal where no return has been filed by the assessee for the assessment year in dispute, high court said.

The court rejected the plea of Areva T&D SA (now renamed as Areva T&D SAS) which had objected to reopening of the assessment proceedings for the year 2005-06. It had said that the income of the assessee was assessed and appropriate orders were passed which can not be reopened on the ground of change of opinion of the assessing officer. "On a conjoint reading of sections 195 and 197 of the act (Income Tax Act), we are of the view that if any opinion is expressed at the time of grant of certificate it is tentative or provisional or interim in nature and the same would not debar the assessing officer from initiating a proceeding under section 147 of the act on the ground that there has been a change of opinion," said a bench comprising Chief Justice Dopak Misra and Justice Sanjeev Khana in its judgement on Monday.