High Court of Delhi · Judgments and reasoned final orders
Principal Commissioner of Income Tax-4, New Delhi v. M/s NTPC Ltd.
ITA 113/2026 & ITA 82/2026 ·
Invalidity of second reassessment proceedings under Sections 147/148 for AYs 2011-12 and 2012-13 triggered by an internal audit objection regarding computation of deduction under Section 80-IA and set-off of brought-forward losses of a Combined Cycle Gas Power Plant (involving Rs. 150 crore tax demand) after the same issue had already been examined in earlier Section 143(3)/147 orders dated 21.02.2014.
1. FACTS OF THE CASE
For AYs 2011-12 and 2012-13, the AO had already framed assessments under Section 143(3) read with Section 147 on 21.02.2014 after examining NTPC's Section 80-IA claim and carry-forward of losses of its Combined Cycle Gas Power Plant Station. Subsequently, based on an objection raised by the Departmental Audit Party involving a combined tax effect of Rs. 150 crore, the AO issued fresh notices under Section 148. The ITAT by common order dated 16.02.2024 quashed the reassessments as based on a mere change of opinion.
2. DISCUSSION BY THE COURT
Distinguishing CIT v. P.V.S. Beedies Pvt. Ltd. (1999) 237 ITR 13 (SC), the Division Bench held that the audit party had not unearthed any new tangible fact, but had merely expressed a different legal opinion on the same factual background that the AO had already scrutinized while passing the earlier orders dated 21.02.2014. No reassessment under Section 147/148 can be triggered by an audit objection expressing a change of opinion on law. Responding to the Revenue's plea regarding the Rs. 150 crore demand, the Court observed: 'however big may be the amount, nothing is bigger than the letter of law.'
3. JUDICIAL DECISION
Finding no illegality in the ITAT's common order dated 16.02.2024, the High Court dismissed both ITA 113/2026 and ITA 82/2026.
4. OUTCOME
Assessee - Both Revenue appeals dismissed; annulment of Section 147/148 reassessments for AYs 2011-12 and 2012-13 upheld.
5. AKHB REVIEW POINT
An internal audit objection that re-evaluates the legal computation of a Section 80-IA deduction on facts already scrutinized by the AO does not constitute 'tangible material' and cannot sustain a Section 147 reopening regardless of the quantum of tax involved.
Source and verification
8-page official High Court of Delhi judgment PDF (DLHC011320352024_1_2026-02-09.pdf, 91,865 bytes).
Original PDF: 8 pages · SHA-256: db885a5aafdfbc0f90d9e5c75d235cb02822428de677887ead64c80a65d20513
Supplied source-reviewed note retained; original bytes and identity validation checked in this release. Substantive re-review is not claimed for this record.
Applies Sections 80-IA, 143(3), 147, and 148 of the Income-tax Act, 1961 for AYs 2011-12 and 2012-13. Income-tax Act, 2025 equivalence is not verified.
Full 8-page primary judgment PDF text read and verified page-by-page. Distinguishes CIT v. P.V.S. Beedies Pvt. Ltd. (1999) 237 ITR 13 (SC) where the audit party points out a legal interpretation rather than a new primary fact.
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