Mumbai: Fluctuations in tax payments as per the will of the income-tax officer have been ruled out by a recent order. The Income Tax Appellate Tribunal (ITAT) has put a check on the wide powers enjoyed by the income-tax officers clearing that once the assessment is done, it cannot be changed to put an additional tax burden on the tax payer.

According to Economic Times, the decision was triggered when Mumbai based security service provider Sudarshan Securities, represented by Jignesh R Shah, moved the ITAT. They filed an appeal against an unreasonable taxation process whereby initially it was taxed 30 percent of the book profit under Minimum Alternate Tax. While passing the taxation order in 1997-98, the assessing officer came to a decision that capital gain should be taxed at a concessional rate of 21.5 percent and the balance at 43 percent.

However, after a period of time the assessing officer altered it to charge the entire book profit at 43 percent. This change of opinion was cited to be empowered to the assessing officers as per the section 147 Income Tax Act of 1989. But the tribunal immediately wiped off the undue advantages enjoyed by them and gave the orders in the favor of Shah.

The amendments cited by the officers never gave the power to change original assessment if the same criteria are evaluated. Infact, only if any additional income exists which have not been included earlier then the opening of an already assessed case is possible.