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G. S. KULKARNI, FIRDOSH P. POONIWALLA
Shri Saibaba Sansthan Trust (Shirdi) – Appellant
Versus
Union of India – Respondent
JUDGMENT :
(per G. S. Kulkarni, J.):
1. This petition under Article 226 of the Constitution of India challenges the validity of notice dated 31 March 2019 issued by respondent no.4/Deputy Commissioner of Income Tax (Exemption) Circle 2(1)-Mumbai, under Section 148 of the Income Tax Act, 1961 (for short, “the IT Act”) to reopen the assessment of the petitioner for Assessment Year 2014-15, as also an order dated 28 June 2022 passed by respondent no.4 rejecting the petitioner’s objection to the reopening of the assessment. The impugned reopening is within a period of four years.
2. The relevant facts need to be noted:-
The petitioner is a Public Trust deemed to be constituted and governed under the State Legislation namely under the provisions of the “Shri Saibaba Sansthan Trust (Shirdi) Act, 2004” (for short, “2004 Act”). It is the petitioner’s case that the petitioner manages and administers the “Sai Baba Temple”, at Shirdi which is worshiped by millions of devotees from all over the world. Also, the petitioner is stated to be involved in religious and charitable activities. The petitioner has described the history in relation to Shirdi temple and the faith, which the people have in wor
Reopening of assessment under the Income Tax Act requires fresh tangible material; mere change of opinion is insufficient for valid reassessment.
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.
Assessee’s objections raised against the reopening proceedings are not acceptable as the case warrants scrutiny on the same lines. Accordingly, the objections so raised are hereby disposed off accord....
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 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.
Point of Law : Sufficiency of the evidence or material is not open to scrutiny by the Court but the existence of the belief is the sine qua non for a valid exercise of power.
The main legal point established is that the Assessing Officer's belief for the reassessment of income under section 148 of the Income Tax Act is based on subjective satisfaction and the existence of....
At the time of recording the reason for satisfaction of AO, there should be prima facie some material on the basis of which, the department could reopen the case. The sufficiency or correctness of th....
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