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IN THE HIGH COURT OF DELHI AT NEW DELHI
V.KAMESWAR RAO, VINOD KUMAR
Sapphire Foods India Ltd. – Appellant
Versus
Assistant Commissioner Of Income Tax Acit (OSD) Delhi – Respondent
JUDGMENT :
V. KAMESWAR RAO, J.
1. This petition has been filed with the following prayers :
“1. Issue a writ of Certiorari or writ of mandamus or appropriate writ, direction or order
a. setting aside the impugned order u/s 148A(d) of the Act and the accompanying notice u/s 148 of the Act both date 31.03.2023 by Respondent No. 1 in the Petitioner’s case for A. Y. 2016-17.
b. Quashing the proceedings initiated vide the impugned notice dated 31.03.2023 u/s 148 of the Act.”
2. The petition relates to the Assessment Year (AY) 2016-17, for which an order under Section 148 A(d) of the Income Tax Act,1961 (‘the Act’) and a notice under of the Act, both dated 31.03.2023 were issued by the respondent no.1, on the information available with him whereby he has called for the filing of the return of income (ITR) by the petitioner herein, within thirty days.
FACTUAL BACKGROUND
3. At the outset, we may provide a brief factual background of the controversy. The petitioner herein, is a company incorporated under the Companies Act, 1956 and is regularly assessed to income tax at Delhi. For the AY concerned i.e. 2016-17, the petitioner filed its ITR on 08.10.2016, declaring loss of Rs. 10,24,33,542/-. Th
Reassessment under Income Tax Act is impermissible on issues already addressed in a completed assessment, as it constitutes a change of opinion without new material evidence.
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.
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....
The court emphasized the need for tangible material to believe that income had escaped assessment and held that the power to grant approval for re-opening an assessment is coupled with a duty and can....
The Assessing Officer is mandated to dispose of objections to reassessment notices by a speaking order before proceeding with the assessment.
Reassessment notice u/s 148 beyond three years requires approval from Principal Chief Commissioner u/s 151(ii); approval from Principal Commissioner invalid, rendering proceedings void. 2023 proviso ....
Assessment under Income Tax requires concrete information indicating escapement of income, which was absent in this case, rendering notices invalid.
The court established that the discretionary nature of inquiries under Section 148A does not mandate a personal hearing or exhaustive justification for the Assessing Officer's decisions.
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