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K. R. SHRIRAM, NEELA GOKHALE
Hasmukh Estates Pvt. Ltd. – Appellant
Versus
Assistant Commissioner of Income-tax 1(1)(1), Mumbai – Respondent
JUDGMENT :
(Neela Gokhale, J.) :
1. Rule. Rule made returnable forthwith. By consent, Petition is taken up for final hearing at the admission stage.
2. Petitioner assails notice dated 30th July 2022 issued under Section 148 of the Income Tax Act, 1961 (“Act”), approval under Section 151 of the Act granted by the Principal Chief Commissioner of the Income Tax (“PCCIT”), Mumbai, communication/letter dated 28th May 2022 seeking explanation and details from Petitioner to facilitate the Jurisdictional Assessing Officer (“JAO”) to pass an order under Section 148A(d) of the Act, Order dated 29th July 2022 passed under Section 148A(d) of the Act for Assessment Year ("AY") 2015-16, notice dated 31st May 2021 under Section 148A(b) of the Act, notice dated 21st April 2021 for AY 2015-16 under Section 148 of the Act.
3. Facts giving rise to the present Petition are that Petitioner, a private company engaged in the business of undertaking real estate projects, sold a plot of land situated at Raigad District to one Regency Nirman Limited by a registered agreement to sell dated 7th October 2011 for a consideration of Rs.18 Crores. The property was valued at Rs.16.50 Crores for the purpose of stamp du
The main legal point established in the judgment is that re-assessment based on a change of opinion is impermissible under the Income Tax Act, and tangible material is required to justify re-opening.
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.
The main legal point established in the judgment is that the reopening of assessment should be based on the availability of tangible material and not on a mere change of opinion of the Assessing Offi....
The court established that reopening assessments requires new material evidence, and Section 50C does not apply to stock in trade, reinforcing the principle against mere changes of opinion.
Reopening of assessment under the Income Tax Act requires tangible new material; mere change of opinion is insufficient.
Reopening of assessments requires tangible evidence of income escapement; mere change of opinion based on previously disclosed facts is insufficient.
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....
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.
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