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K. R. SHRIRAM, M. M. SATHAYE
Shriprakash Ramshringar Pandey – Appellant
Versus
Income Tax Officer, Mumbai – Respondent
JUDGMENT :
K.R. SHRIRAM, J.
1. Rule. Rule made returnable forthwith. By consent of both counsel, Petition taken up for final hearing at the admission stage.
2. By this Petition, Petitioner challenges the Notice dated 26.03.2019 issued under section 148 of the Income Tax Act, 1961 (the said Act) and the Order dated 20.11.2019 disposing Petitioner’s objections to the reopening of assessment. Petitioner was Managing Director of a Company and earned income from salary, income from house property and income from other sources. For the assessment year 2012-13, Petitioner has filed income tax return on 27.07.2012 disclosing the total income of Rs.81,23,933. The assessment was completed under section 143(3) of the said Act. In the assessment order dated 31.12.2014, the income was assessed at Rs.82,07,933/-.
3. Petitioner received impugned notice dated 26.03.2019 under section 148 of the said Act informing Petitioner that there were reasons to believe Petitioner’s income chargeable to tax for the assessment year 2012-13 has escaped Assessment within the meaning of Section 147 of the said Act. Petitioner was called upon to file return in the prescribed form which Petitioner did. Petitioner was a
The main legal point established in the judgment is that the reopening of an assessment must be based on valid reasons to believe that income chargeable to tax has escaped assessment, and not merely ....
The court emphasized the need for tangible material to believe that income had escaped assessment and held that the power to grant approval for re-opening an assessment is coupled with a duty and can....
Taxation – Assessment/Re assessment - Concept of ‘change of opinion’ as an inbuilt test to check abuse of power by AO. It was further observed that AO has power to reopen assessment proceedings, prov....
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.
Reassessment cannot be based on a change of opinion, and the duty of the assessee is to disclose fully and truly all primary relevant facts.
Section 147 enables the Assessing Officer to assess or reassess any income chargeable to tax which he has reason to believe has escaped assessment for an assessment year.
The concept of change of opinion is an in-built test to check abuse of power by the Assessing Officer. Reassessment proceedings initiated on the basis of a mere change of opinion are invalid and with....
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