Back
IN THE HIGH COURT AT CALCUTTA
OM NARAYAN RAI
Balmer Lawrie And Company Limited – Appellant
Versus
Union of India – Respondent
| Table of Content |
|---|
| 1. background on reassessment appeal. (Para 1 , 2) |
| 2. petitioner's arguments against reassessment. (Para 3 , 4 , 5) |
| 3. court's analysis of legal information provided. (Para 6 , 7 , 8 , 9 , 10) |
| 4. inconsistency in assessing officer's reasoning. (Para 11 , 12 , 13 , 14) |
| 5. no material indicating income escaping assessment. (Para 15 , 16 , 17 , 18) |
| 6. judicial precedence on reassessment authority. (Para 19 , 20 , 21) |
| 7. allowing jurisdictional intervention under article 226. (Para 22 , 23 , 24) |
| 8. invocation of section 147 procedure. (Para 25 , 26) |
| 9. reassessment order set aside with conditions. (Para 27 , 28 , 29) |
| 10. final conclusion and order from the court. (Para 30 , 31) |
JUDGMENT :
Om Narayan Rai, J.
1. This writ petition has been filed assailing proceedings for reassessment of the petitioner’s income for the Assessment Year 2019-20.
FACTS OF THE CASE:
2. A brief summary of the facts gathered from the writ petition may first be noticed:-
a) The petitioner is a Government company. It is under the control of the Ministry of Petroleum and Natural Gas, Government of India and is classified as a category-I, Miniratna Company.
b) Of the several businesses which the company conducts, o
A reassessment notice must be based on specific and valid information suggesting income has escaped assessment, and changing the basis for reassessment mid-proceeding is impermissible under the Incom....
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....
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.
The 'reason to believe' for reassessment must be based on tangible material with a direct nexus to the formation of the belief, and reassessment cannot be made on a change of opinion.
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 ....
Mere change of opinion is not a ground for reopening of assessment under Section 147 of the Income Tax Act, 1961.
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.
Point of Law : Court satisfied that there was prima facie material available on record before the assessing officer for issuing a notice for reassessment and the notice under Section 148.
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.
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
