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A. S. CHANDURKAR, VRUSHALI V. JOSHI
Arvind Sahdeo Gupta – Appellant
Versus
Income Tax Officer, Ward – 1, Akola, Maharashtra – Respondent
JUDGMENT :
A.S. Chandurkar, J.
Rule. Rule made returnable forthwith and heard the learned Counsel for the parties.
2. The challenge raised in this Writ Petition is to the notice dated 24/3/2020 that has been issued by the Income Tax Officer Ward – 1, Akola under Section 148 of the Income Tax Act, 1961 (for short “Act of 1961”). A further consequential prayer seeks quashing of the assessment that has been completed by virtue of order dated 29/9/2021.
3. The challenge raised to the notice issued under Section 148 of the Act of 1961 is principally on the grounds that the said notice has been issued on incorrect facts, no reasons have been given while deciding the objections raised by the petitioner to the re-opening of the proceedings and the same have been decided without passing any speaking order. In addition, it is urged that the re-opening of the proceedings is without there being any independent application of mind and no reasons to believe have been indicated by the Income Tax Officer (for short “ITO”) in that regard.
4. The facts relevant for considering the challenge are that on 24/3/2020, the ITO issued notice under Section 148 of the Act of 1961 stating therein that he had reaso
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 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....
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....
The Assessing Officer is mandated to dispose of objections to reassessment notices by a speaking order before proceeding with the assessment.
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.
Reopening of assessment under Section 148 is invalid if based on materials already available during the original assessment, constituting a mere change of opinion without fresh evidence.
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.
Reassessment under Income Tax Act is impermissible on issues already addressed in a completed assessment, as it constitutes a change of opinion without new material evidence.
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