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K. R. SHRIRAM, FIRDOSH P. POONIWALLA
DCB Bank Ltd. (Formerly Development Credit Bank Ltd. ) – Appellant
Versus
Deputy Commissioner of Income Tax, Circle-2(3)(1) Mumbai – Respondent
JUDGMENT :
Firdosh P. Pooniwalla, J.
1. The present Writ Petition challenges a Notice dated 24th March 2021 issued under Section 148 of the Income Tax Act, 1961 (“the Act”) and an Order dated 13th January 2022, rejecting the Petitioner’s objections against the reopening of the Assessment for Assessment Year 2014-15 under the provisions of Section 148 of the Act.
2. The Petitioner is a company engaged in the banking business. The Petitioner e-filed its original Return of Income for the Assessment Year 2014-15 on 27th November 2014, declaring NIL Income after setting off brought forward losses. The Petitioner subsequently filed the Computation of Income, a copy of the Audited Balance Sheet, the Profit and Loss Account and Tax Audit Report under Section 44AB in Form No.3 CD of the Act. The Report dated 25th November 2014, under Section 115JB of the Act, in Form No.29B, was uploaded on the Income Tax website.
3. The Assistant Commissioner of Income Tax-2(3)(1), who was then the Assessing Officer of the Petitioner, initiated scrutiny assessment and issued various notices/questionnaires to the Petitioner. The Assessing Officer issued a Notice dated 28th August 2015, under Section 143(2) of t
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.
Reopening of assessment under the Income Tax Act requires tangible new material; mere change of opinion is insufficient.
The challenge to a notice and order for reopening of assessment is maintainable when there is no statutory remedy available under the Act. Non-supply of material forming the basis for reopening the a....
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.
The main legal point established in the judgment is that the Assessing Officer must have 'tangible material' to form a reason to believe that income has escaped assessment, especially when issuing a ....
Reopening of assessment is “sufficient reason” to believe that there is escapement of income and the “sufficiency” of the reasons cannot be gone into by the High Court in a writ proceedings under Art....
Point of Law : Assessment - Unless any income chargeable to tax has escaped assessment for such assessment year by reason o f the failure on the part of the assesse to disclose fully and truly all ma....
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