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DHIRAJ SINGH THAKUR, KAMAL KHATA
A & J Associates – Appellant
Versus
Assistant Commissioner of Income Tax, Circle 23(1) – Respondent
JUDGMENT :
KAMAL KHATA, J.
1. This Petition under Article 226 challenges notice under section 148 of the Income-tax Act, 1961 (‘Act’) dated 19th March 2021 issued by Respondent No.1 proposing to reassess the income for the assessment year (‘AY’) 2015-16 and the order dated 16th March 2022, rejecting the objections raised by Petitioner to the proposed action of reopening.
2. The reasons for opening are as under:
2. Brief details of information received by the AO- On perusal of assessment records it was observed that assessee sold office premises i.e., 302, 3rd Floor, building no.19, A-Wing, Pinnacle corporate Pane, BKC, Bandra East, Mumbai-400051 for a consideration of Rs.14,00,00,000/- on 02.05.2014. The assessee claimed to have purchased commercial premises i.e., 101, 1st Floor, Dev Plaza, Andheri (W), Mumbai-58 for a total consideration of Rs.23,29,19,898/- on 31.03.2015. It was contended that since neither the WDV of the block of assets “Building
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 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 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 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 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 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 true test of income chargeable to tax escaping assessment is whether there exists fresh 'tangible material' on the basis of which appropriate conclusion is reached.
The court established that reopening assessments requires a clear and valid reason to believe that income has escaped assessment, which was not present in this case.
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