Back
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
M.S. SONAK, JITENDRA JAIN
Prithvi Apartments Co-operative Housing Society Limited – Appellant
Versus
Assistant Commissioner of Income Tax – Respondent
JUDGMENT :
JITENDRA JAIN, J.
1. Heard learned Counsel for the parties.
2. Rule. Rule is made returnable forthwith. By consent, the Petition is taken up for final hearing, since the pleadings in this case are completed.
3. This Petition challenges notice under Section 148 of the Act dated 31.03.2021 for the assessment year 2014-15.
4. In this case, an assessment order under Section 143(3) of the Act was passed on 07.12.2016. The impugned notice under Section 148 is dated 31.03.2021 i. e. after a period of four years from the end of the relevant assessment year.
5. The reasons recorded for re-opening the concluded assessment which were furnished to the Petitioner on 18.11.2021 read as under :-
6. The precondition as per first proviso to Section 147 of the Act for re-opening the case, where an assessment order under Section 143(3) is passed and the case is to be re-opened after a period of four years is that there has to be failure to disclose fully and truly all material facts necessary for the assessment.
7. On a perusal of the reasons recorded which are reproduced above, there is no allegation of any failure on the part of the assessee to disclose fully and truly all material facts necessa
Re-opening of assessment under Section 148 requires failure to disclose material facts; absence of such allegation invalidates the notice.
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 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.
The court emphasized the requirement for the AO to have a valid 'reason to believe' that income has escaped assessment due to failure to disclose fully and truly all material facts necessary for asse....
The power to reopen assessments under Section 147 of the IT Act is much wider post-1st April, 1989, but must be based on tangible material and have a live link with the formation of belief.
Reopening of assessment under the Income Tax Act requires tangible new material; mere change of opinion is insufficient.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
