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SUPREME COURT OF INDIA
M.R. SHAH, B.V. NAGARATHNA, JJ.
Income Tax Officer - Petitioner
Versus
Kayathwal Estate Private Limited - Respondent
Petition for Special Leave to Appeal (C) No. 882 of 2022
Decided On : 14-02-2022
Suppression - Income Tax - Assessing Officer asked for details regarding unsecured loan, Assessee furnished details, no suppression in disclosing true and correct facts, re-assessment proceedings quashed, Special Leave petition dismissed
Fact of the Case:
Assessing Officer asked for details regarding unsecured loan, Assessee furnished details, re-assessment proceedings initiated beyond four years
Finding of the Court:
High Court quashed re-assessment proceedings and notice under Section 148 of the Income Tax Act, Special Leave petition dismissed
Issues: Suppression of facts, validity of re-assessment proceedings, notice under Section 148 of the Income Tax Act
Ratio Decidendi: No suppression in disclosing true and correct facts, re-assessment proceedings initiated beyond the prescribed period, High Court's jurisdiction to quash re-assessment proceedings
Final Decision: Re-assessment proceedings and notice under Section 148 of the Income Tax Act quashed, Special Leave petition dismissed
ORDER :
1. Having heard Shri Balbir Singh, learned ASG and in the facts and circumstances of the case more particularly at the time of Scrutiny Assessment under Section 143(3), the Assessing Officer had asked for the details regarding the unsecured loan taken by the Assessee during the year under consideration and the Assessee furnished the details as asked for and thereafter, after perusing the details so furnished by the Assessee, the Assessing Officer passed an order under Section 143(3) of the Act. Therefore, it cannot be said that there was any suppression on the part of the Assessee in not disclosing true an correct facts. It is required to be noted that even the re-assessment proceeding were initiated beyond the period of four years. Under the circumstances, the High Court is absolutely justified in quashing the re-assessment proceedings and the notice under Section 148 of the Income Tax Act. No interference of this Court is called for in exercise of powers under Article 136 of the Constitution of India.
2. With this, the Special Leave petition stands dismissed of.
3. Pending application(s), if any, shall stand disposed of.
Assessee not guilty of suppression, re-assessment proceedings quashed
Reopening of assessment under Section 148 is impermissible if based solely on a change of opinion without new material evidence.
Point of Law : Implementation/ clarified by Instruction issued by Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, in exercise of powers under Section 119 of Act, 1961.
The main legal point established in the judgment is the significance of adhering to the procedure prescribed under Section 148A of the Income Tax Act, 1961 before initiating reassessment proceedings.....
The court upheld the authority of the Assessing Officer to reassess income under amended provisions of the Income Tax Act, reinforcing that objections can be addressed during reassessment proceedings....
Reopening of assessment under the Income Tax Act based on previously scrutinized issues constitutes a mere change of opinion and is impermissible without new material.
Notice u/s.148 uploaded on portal post 01.04.2021 attracts s.148A regime; non-compliance with procedure and Supreme Court directions, coupled with s.149 time-bar for AY 2014-15, renders reassessment ....
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