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DHIRAJ SINGH THAKUR, KAMAL KHATA
Hindoostan Mills Limited – Appellant
Versus
Deputy Commissioner of Income Tax, Mumbai – Respondent
JUDGMENT :
KAMAL KHATA, J.
1. This Petition under Article 226 of the Constitution filed on 2nd March 2022 impugns notice dated 30th March 2021 issued under section (u/s) 148 of the Income Tax Act, 1961 (Act) for Assessment Year (AY) 2014-15 and the order dated 14th February 2022 disposing of the objections raised for reassessment.
2. The record indicates that the notice dated 30th March 2021 u/s 148 of the Act is issued after expiry of four years and the proviso to section 147 of the Act applies. Respondents have to show there was failure to truly and fully disclose material facts as decided by this Court in Ananta Landmark (P) Ltd. vs. DCIT CC 5(3) Mumbai, (2021) 131 Taxmann.com 52.
3. We have examined the reasons for initiation of proceedings u/s 147 of the Act annexed to the Petition that are evidently premised on the statement ‘It is seen from the case records.” The Assessment Officer (AO) recorded that:
The main legal point established is that a notice for reassessment cannot be based on a change of opinion but must be grounded on the grounds of income escaping assessment.
The judgment established the importance of tangible material and the prohibition of a mere change of opinion in the exercise of power under section 147 of the Income Tax Act.
The court emphasized the importance of complying with the statutory pre-conditions for re-opening assessments and the necessity for the Assessing Officer to have an independent 'reason to believe' th....
Failure to disclose material facts is a key consideration in the validity of notices issued under section 148 of the Income Tax Act.
The main legal point established in the judgment is that reassessment proceedings must be based on tangible material and cannot be initiated solely on the basis of a 'change of opinion' without fresh....
The court emphasized the importance of considering the contentions of the petitioner and maintaining consistency in decisions under the Income Tax Act.
Proceedings under section 147 of the Income-tax Act, 1961 are for the benefit of the revenue and not the assessee, and the assessee cannot be permitted to take advantage of the reassessment proceedin....
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....
Point of Law : Court satisfied that there was prima facie material available on record before the assessing officer for issuing a notice for reassessment and the notice under Section 148.
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