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DHIRAJ SINGH THAKUR, KAMAL KHATA
Prabhat Properties Private Limited – Appellant
Versus
Assistant Commissioner of Income, Mumbai – Respondent
JUDGMENT :
KAMAL KHATA, J.
1. The above two Writ Petitions are for the assessment years (‘AYs’) 2015-16 and 2016-17 having common facts and can be disposed of with a common order. For the sake of brevity we advert to the facts stated in Writ Petition No. 2827 of 2022.
2. This Petition under Article 226 impugns notice under section 148 of the Income-tax Act, 1961 (‘Act’) dated 31st March 2021 issued by Respondent No. 1 proposing to reassess the income for the AY 2015-16 and the order dated 24th January 2022, rejecting the objections raised by Petitioner challenging the validity of the said notice.
3. The reasons for opening are as under:
Subsequently, a credible information has been received from ITO (I&CI) Unit 2(3) Mumbai, that the assessee i.e. Ms. PRABHAT PROPERTIES PRIVATE LIMITED has shown a total profit of Rs. 2,07,33,019 from trading in shares in F & O/commodities/ currency. The same was verified by I&CI in the course of verification made after SEBI passed
The main legal point established is that there must be a rational connection or live link between the material coming to the notice of the Income-tax Officer and the formation of his belief that ther....
The court held that an Assessing Officer must form an independent opinion based on material on record before reopening an assessment, and cannot solely rely on external information.
The main legal point established in the judgment is that the jurisdictional conditions for invoking section 147 – 148 of the Income-tax Act, 1961 must be satisfied, and there should be no failure to ....
The court emphasized the requirement for the AO to have a valid 'reason to believe' that income has escaped assessment due to failure to disclose fully and truly all material facts necessary for asse....
The main legal point established is that the AO cannot reopen the assessment on a change of opinion when the primary facts necessary for assessment are fully and truly disclosed.
The Assessing Officer must establish the jurisdictional requirement for reopening and cannot rely solely on information without verifying if the issue had been disclosed during the original assessmen....
Under section 147 of the Act the proceedings for the reassessment can be initiated only if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any....
The main legal point established in the judgment is that the reopening of assessment should be based on the availability of tangible material and not on a mere change of opinion of the Assessing Offi....
Point of law: It is no doubt true that the Court cannot go into the sufficiency or adequacy of the material and substitute its own opinion for that of the Income Tax Officer on the point as to whethe....
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