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SONIA GOKANI, SANDEEP N. BHATT
Adani Power Maharashtra Limited – Appellant
Versus
Assistant Commissioner Of Income Tax, Circle 1(1)(1) – Respondent
ORDER :
(Sonia Gokani, J.)
1. By way of the present petition under Article 226 of the Constitution of India, the challenge is to notice issued by the respondent under under Section 148 of the Income Tax Act (‘IT Act’ hereinafter) dated 21.3.2021 directing the petitioner to furnish the return of income for the assessment year 2017-18 on the ground that the same is contrary to law and without jurisdiction.
1.1 The order disposing of the objections passed by the respondent dated 25.10.2021 also has been challenged.
2. The petitioner is a limited company which has filed its return of income for A.Y.2017-18 declaring total loss on 28.11.2017 under normal provisions and the bookloss as well.
2.1 The tax return of the petitioner was processed and his case was selected for scrutiny under CASS. The detailed scrutiny was undertaken and the assessment order under Section 143(3) was passed on 21.12.2019 accepting the returned total loss of the petitioner for A.Y.2017-18 without making any addition or disallowance of any expenses. The respondent issued notice under Section 148 asking the petition
The main legal point established in the judgment is that the expenditure incurred on corporate social responsibility activities under Section 135 of the Companies Act is not to be treated as expendit....
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.
Reopening of assessment under the Income Tax Act requires tangible new material; mere change of opinion is insufficient.
Assessee’s objections raised against the reopening proceedings are not acceptable as the case warrants scrutiny on the same lines. Accordingly, the objections so raised are hereby disposed off accord....
The main legal point established in the judgment is that the reopening of assessment should be based on the availability of tangible material and not on a mere change of opinion of the Assessing Offi....
Reopening under section 147 invalid if based on borrowed satisfaction from investigation wing without AO's independent application of mind demonstrating live link to non-disclosure of material facts,....
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