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M. S. KARNIK, VALMIKI MENEZES
Sete Mares Global Forex Private Limited, Through its authorised Director Mr Miguel Afonso – Appellant
Versus
Union of India – Respondent
JUDGMENT :
(Per M. S. Karnik, J)
1. Heard learned counsel for the parties.
2. Rule. The rule is made returnable forthwith at the request and with the consent of the learned counsel for the parties.
3. The challenge in this petition under Article 226 of the Constitution of India is to the impugned notice dated 31.03.2022 issued by the Income Tax Officer, Ward-1, Margao under Section 148 of the Income Tax Act, 1961 (the Act for short).
4. The facts in a nutshell are thus:
The petitioner-assessee is a full-fledged money changer pursuant to a full-fledged money changer's license issued by the RBI under the Foreign Exchange Management Act, 1999. The assessee undertakes the sale and purchase of foreign currency and makes a profit only on the basis of the commission it earns.
5. The assessee filed income tax returns for the Assessment Year 2018-2019 disclosing the total taxable income of Rs.3,50,100/ (Rupees Three Lakhs Fifty Thousand One Hundred Only). Respondent No.2 issued notice under Section 143(2) of the Act to the assessee for complete scrutiny on 22.09.2019. The assessee also received notice under Section 142(1) of the Act on 10.12.2020 calling upon the assessee to submit various docume
Reopening of assessment under the Income Tax Act requires fresh tangible information; reliance on previously available data constitutes a change of opinion, which is impermissible.
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.
Reopening of income tax assessments requires new tangible material; mere change of opinion is insufficient.
The court ruled that an Assessing Officer must demonstrate a tangible basis for believing income has escaped assessment; mere suspicion or lack of evidence does not justify reopening.
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....
It is a settled position of law that reopening of case under Section 147 of the act, after expiry of 4 years, cannot be justified unless the income chargeable to tax has escaped assessment by reason ....
It is a settled position of law that reopening of case under Section 147 of the act, after expiry of 4 years, cannot be justified unless the income chargeable to tax has escaped assessment by reason ....
The Court should be guided by the reasons recorded for the reassessment and not by the reasons or explanation given by the Assessing Officer at a later stage in respect of the notice of reassessment.....
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