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RAJIV SHAKDHER, GIRISH KATHPALIA
Sh. Manujendra Shah – Appellant
Versus
Commissioner of Income Tax-8 – Respondent
JUDGMENT
Rajiv Shakdher, J. (Oral)--This writ petition concerns Assessment Year (AY) 2011-12.
2. Notice in this petition was issued on 27.11.2018 by a coordinate bench of this court.
2.1. At the stage of issuance of notice in the writ petition, an interim direction was passed to the effect that the respondent/revenue would not pass a final reassessment order during the pendency of the writ petition.
3. Since then, pleadings in the writ action have been completed.
4. Dr. Rakesh Gupta, learned for the petitioner, says that the reassessment proceedings have been triggered without due application of mind by the Assessing Officer (AO).
5. It is Mr Gupta's submission that even the authority granting approval has not applied its mind as to whether the AO had sufficient material available with him to form a belief that income which was otherwise chargeable to tax had escaped assessment.
6. The record shows that the petitioner had filed his Return of Income (ROI) for the aforementioned AY i.e., AY 2011-12 on 29.06.2012.
6.1. The ROI was processed under Section 143(1) of the Income Tax Act, 1961 [in short, "the Act"].
7. The petitioner was served a notice dated 24.01.2014 under Section
The main legal point established in the judgment is the requirement for the AO to have a 'live link' between the material available and the reasons for belief that income has escaped assessment. The ....
Reopening of assessments requires tangible evidence of income escapement; mere change of opinion based on previously disclosed facts is insufficient.
The main legal point established in the judgment is that re-assessment based on a change of opinion is impermissible under the Income Tax Act, and tangible material is required to justify re-opening.
The court established that reopening assessments requires new material evidence, and Section 50C does not apply to stock in trade, reinforcing the principle against mere changes of opinion.
The main legal point established in the judgment is the requirement of tangible material and cogent facts for invoking powers under Section 147 of the Income Tax Act, and the importance of the reason....
The power to reopen a completed assessment under Section 147 of the Act 1961 has been bestowed on the Assessing Officer, if he has reason to believe that any income chargeable to tax has escaped asse....
Reopening of assessment under S.147 is valid when the Assessing Officer has a reasonable belief of income escapement supported by tangible material, even if initial returns were accepted, provided su....
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