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ASHUTOSH SHASTRI, J. C. DOSHI
Adani Power Maharashtra Limited – Appellant
Versus
Assistant Commissioner Of Income Tax, Circle 1(1)(1) – Respondent
ORDER :
(Ashutosh Shastri, J.)
1. By way of this petition under Article 226 of the Constitution of India, the petitioner has prayed for quashing and setting aside the impugned notice dated 21.03.2021 at Annexure-A as well as for setting aside the impugned order dated 25.10.2021.
2. The brief facts leading to rise of present petition is that petitioner is a limited company and all the shareholders are the citizens of India and as such, amenable to the writ jurisdiction of this Court. The petitioner submitted its return of income for Assessment Year 2016-17 on 28.11.2016 declaring total loss of Rs.1206,52,27,424/- under the normal provisions and book profit of Rs.0/-. The return of the petitioner was processed and the case of the petitioner was selected for scrutiny under CASS. On furnishing information, detailed scrutiny was undertaken and later on, on 22.12.2018, the assessment order under Section 143 (3) of the Income Tax Act, (hereinafter referred to as the “Act”) came to be passed assessing total loss of the petitioner at Rs.1181,07,09,327/- for Assessment Year 2016-17.
2.1. It is the case of the petitioner that the respondent issued notice upon the petitioner under Section 148 of
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....
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.
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.
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 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....
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....
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.
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