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G. S. KULKARNI, ADVAIT M. SETHNA
Imperial Consultants and Securities Ltd. – Appellant
Versus
Deputy Commissioner of Income Tax, Circle-6(1)(2) – Respondent
JUDGMENT :
(G.S. Kulkarni, J.)
1. Rule returnable forthwith. Respondents waive service. By consent of the parties, heard finally.
2. This petition under Article 226 of the Constitution of India challenges the legality and validity of the notice dated 31 March 2021 issued to the petitioner under Section 148 of the Income Tax Act, 1961 (for short ‘the IT Act’) and an order dated 24 February 2022 disposing of the objections filed for reopening of the assessment and the consequential notice dated 14 November 2021 issued under Section 143(2) of the IT Act. It also assails the notice dated 24 February 2022 issued under Section 142(1) of the IT Act. There is a further prayer that the respondents be directed by a writ of this Court, not to act upon the impugned orders and the impugned notices.
3. The petitioner has also raised an issue in regard to the approval granted under Section 151 of the IT Act for reopening of the assessment. In this regard, a prayer is made for a direction to the respondents to furnish a copy of the approval obtained under Section 151 of the IT Act for reopening of the assessment. Considering such prayer, on 14 March 2022 after hearing the parties, a coordinate Bench
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 assessment beyond four years without fresh tangible material or proper disposal of objections is illegal under the Income Tax Act.
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.....
Reopening of assessment under the Income Tax Act requires tangible material; mere change of opinion is insufficient for reassessment.
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.
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 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....
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