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M. S. SONAK, BHARAT P. DESHPANDE
Shrikant Vasudev Naik – Appellant
Versus
Assistant Commissioner Of Income Tax – Respondent
JUDGMENT
M. S. Sonak, J. - Heard the learned counsel for the parties.
2. The learned counsel agree that a common judgment and order can dispose of both these petitions because the issues of law and fact are almost identical. The Petitioner in Writ Petition No.48 of 2022 is the wife of the Petitioner in Writ Petition No.47 of 2022. Given Section 5A of the Income Tax Act, 1961, separate returns were filed by the wife and the husband for the Assessment Year 2016-2017. Therefore, the issues of law and facts raised in both these petitions are identical. Accordingly, writ Petition No.47 of 2022 is taken the lead petition.
3. The Petitioners filed their income tax returns under Section 139(1) for the Assessment Year 2016-2017. This was followed by a revised return of income on 18.01.2017, declaring a total income of ?1,17,69,130/-. On 11.08.2017, their cases were considered for limited scrutiny, and a notice under Section 143(2) was issued to them.
4. Notice dated 11.08.2017 stated that the following issues have been identified for examination:
"i. Whether value of consideration for computation of capital gains has been correctly shown in the return of income.
ii. Whether deduction from capital
The reassessment based on a mere change of opinion is not a valid ground for reopening an assessment under Section 147 of the I.T. Act. The reasons for reopening an assessment must have a live link w....
The main legal point established in the judgment is the requirement of tangible material and cogent facts for invoking powers under Section 147 of the Income Tax Act, and the importance of the reason....
Reopening of assessment under the Income Tax Act requires tangible new material; mere change of opinion is insufficient.
Reopening of assessment under the Income Tax Act after four years is impermissible without failure to disclose material facts; mere change of opinion does not justify such action.
Assessee’s objections raised against the reopening proceedings are not acceptable as the case warrants scrutiny on the same lines. Accordingly, the objections so raised are hereby disposed off accord....
Reopening of assessment beyond four years without fresh tangible material or proper disposal of objections is illegal under the Income Tax Act.
Mere change of opinion is not a ground for reopening of assessment under Section 147 of the Income Tax Act, 1961.
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