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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
M. S. Sonak, Jitendra Jain, JJ
Dilip Gangaram Patil – Appellant
Versus
Additional/joint/deputy Assistant Commissioner Of Income/income Tax Officer, National Faceless Assessment Centre, Delhi – Respondent
| Table of Content |
|---|
| 1. challenge to notice under section 148 (Para 2) |
| 2. petitioner engaged in real estate (Para 3) |
| 3. notice under section 263 issued (Para 4) |
| 4. notice under section 148 issued (Para 5 , 6 , 7) |
| 5. reliance on prior proceedings (Para 8 , 9 , 10 , 11) |
| 6. reopening beyond four years (Para 12) |
| 7. original assessment did not exist (Para 13) |
| 8. reopening requires fresh material (Para 14 , 15 , 16 , 17 , 19 , 20) |
| 9. notice under section 148 quashed (Para 18) |
JUDGMENT :
Jitendra Jain, J.
1. Rule. By consent of the parties, since pleadings are completed, taken up for final disposal. By consent of the parties, both the writ petitions are disposed of by common order since the issue involved is identical. We propose to treat Writ Petition No.2771 of 2022 as a lead matter.
2. The petitioner challenges notice dated 25 March 2021 issued under Section 148 of the Income Tax Act, 1961 (‘the Act’) for the assessment year 2013-14.
Brief facts :
3. The petitioner is engaged in the business of real estate and has filed his return of income on 27 September 2013 declaring total income of Rs.54,91,960/-. On 31 December 2015, an assessment order under Section 143(3) of the Act came to be passed accepting th
Reopening of income assessment under Section 148 is impermissible without fresh material and cannot be based on previously examined issues under Section 263.
Reopening of assessment under Section 148 is impermissible if the issues were previously examined under Section 263 without fresh material.
Re-assessment under the Income-tax Act cannot be initiated after four years without specific allegations of failure to disclose material facts necessary for assessment.
Reassessment notices under Section 148 of the Income-tax Act cannot be issued after four years unless there is a failure to disclose material facts, which was not established in this case.
Re-assessment under the Income Tax Act cannot occur after 4 years without specific allegations of non-disclosure of material facts.
Reopening of assessment under Section 148 requires valid reasons; mere incorrect information cannot justify such action.
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.
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 beyond four years without fresh tangible material or proper disposal of objections is illegal under the Income Tax Act.
Reopening of assessment under Section 148 is valid based on audit objections if the taxpayer fails to provide timely responses or necessary documentation.
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