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BHARGAV D. KARIA, NIRAL R. MEHTA
Mohit Somchand Shah Huf Through Its Karta Mohit Somchand Shah – Appellant
Versus
Dy. Commissioner Of Income Tax Circle 2(1)(1) Or His Successor – Respondent
JUDGMENT :
(PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA)
1. Heard learned advocate Mr.S.N.Divatia for the petitioner and learned Senior Standing Counsel Mr.Varun K.Patel for the respondent no.1.
2. Rule returnable forthwith. Learned Senior Standing Counsel Mr.Varun K.Patel waives service of notice of rule on behalf of respondents.
3. Learned Senior Standing Counsel Mr.Varun Patel has tendered the affidavits on behalf of the respondent no.2, pursuant to the order dated 24.07.2024, one of the affidavit is filed by the Additional Commissioner of Income Tax Range-2(1)- Ahmedabad and another is filed by the Additional Commissioner of Income Tax(Audit) Ahmedabad, who were holding the charge of Joint Commissioner of Income Tax, Range-2(1)-Ahmedabad at the relevant time.
4. Learned advocate Mr.Patel referring the to averments made in the aforesaid affidavits affirmed on 4th August, 2024, pointed out that both the Officers were under tremendous pressure due to faceless regime to be implemented from 01.04.2021 and therefore inadvertent mistake has been committed by granting sanction for reopening of the assessment for issuance of the notice dated 30.03.2021.
5. Considering such explanation, with
Reopening of assessment under the Income Tax Act requires new material evidence; reliance on previously considered information is insufficient.
Reassessment under the Income Tax Act requires tangible evidence of income escaping assessment; mere suspicion is insufficient.
The reopening of an assessment under the Income Tax Act requires the Assessing Officer to provide specific reasons linking alleged income escapement to the taxpayer's records, which must not solely r....
Point of law: It is no doubt true that the Court cannot go into the sufficiency or adequacy of the material and substitute its own opinion for that of the Income Tax Officer on the point as to whethe....
Point of Law : Formation of belief by the Assessing Officer at the stage of initiation of action under section 147 of the Act is within the realm of subjective satisfaction.
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 main legal point established in the judgment is that the AO is not entitled to reopen the assessment on a change of opinion where primary facts necessary for assessment are fully and truly disclo....
Assessing Officer having arrived at his subjective satisfaction based on additional fresh material placed before him that the petitioner had not fully and truly disclosed all the material facts neces....
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