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DELHI HIGH COURT
MANMOHAN, MANMEET PRITAM SINGH ARORA
Sunil Jain – Appellant
Versus
Income Tax Department – Respondent
| Table of Content |
|---|
| 1. reassessment notice details and related facts. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7) |
| 2. petitioner's arguments against the reassessment. (Para 8 , 9 , 10 , 11 , 12) |
| 3. court's reasoning on reassessment validity. (Para 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21) |
| 4. writ petitions dismissed. (Para 22) |
JUDGMENT
Manmohan, J. Present writ petitions have been filed challenging the reassessment notice dated 28th March, 2021 issued under Section 148 of the Income Tax Act, 1961 [for short `the Act'] and the assessment order dated 27th March, 2022 passed under Section 147 read with Section 144B of the Act for the Assessment Year 2017-18.
FACTS:
2. The relevant facts of the present cases are that the Petitioner filed his return of income for the Assessment Year 2017-2018 on 22nd July, 2017 showing a returned income of Rs.28,42,430/-. The case of the Petitioner was selected under limited scrutiny (computer aided scrutiny selection) by the respondent department and accordingly a notice dated 24th September, 2018 was issued under Section 143(2) of the Act by the Assessing Officer against the Petitioner raising queries regarding cash deposit made by the Petitioner during the demonetis
Reassessment notices under the Income Tax Act are valid if no prior opinion was formed on the income in question, highlighting the independent jurisdiction of assessing authorities.
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.
In reassessment, AO must first conclude on income forming basis of recorded reasons before adding unrelated escaped income; failure invalidates proceedings, requiring fresh notice.
Reassessment notice u/s 148 beyond 3 years invalid without approval from Principal Chief Commissioner/Chief Commissioner u/s 151(ii); Principal Commissioner approval insufficient, quashing proceeding....
Reopening of income tax assessments requires new tangible material; mere change of opinion is insufficient.
Reassessment notice under section 148 void ab initio if prior approval for section 148A(d) order obtained from Principal Commissioner instead of Principal Chief Commissioner when issued after three-y....
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