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BHARGAV D. KARIA, NIRAL R. MEHTA
Valsad District Central Co-Op Bank Limited – Appellant
Versus
Assistant Commissioner Of Income Tax, Valsad Circle – Respondent
JUDGMENT :
BHARGAV D. KARIA, J.
1. Heard learned advocate Mr. Manish Shah for the petitioner and learned Senior Standing Counsel Mr. Karan Sanghani for learned advocate Mrs. Kalpana Raval for the respondents.
2. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Sanghani waives service of notice of rule on behalf of the respondents.
3. Having regard to the controversy in a narrow compass, with the consent of the learned advocates for the respective parties, the matter is taken up for hearing.
4. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 31.03.2021 for the Assessment Year 2015-16 issued under section 148 of the Income Tax Act,1961 [for short ‘the Act’] for reopening of the assessment.
5. In response to the request of the Assessee, reasons recorded by the Assessing Officer were supplied along with notice under section 143(2) dated 30.06.2021. Detailed reasons recorded by the Assessing Officer read as under:
The assessee is an Association of Persons, engaged in the activity of banking and deriving income from profit & gains of business or profession during the year. The assesse
Reopening of assessment under section 148 requires valid reasons and cannot be based on mere suspicion or for verification purposes.
Reopening of income tax assessments requires new tangible material; mere change of opinion is insufficient.
The Assessing Officer must provide clear, reasoned beliefs for reopening assessments; vague and cryptic reasons do not justify jurisdiction under the Income Tax Act.
The court ruled that an Assessing Officer must demonstrate a tangible basis for believing income has escaped assessment; mere suspicion or lack of evidence does not justify reopening.
Reopening of assessment requires tangible material indicating income has escaped assessment; mere change of opinion is insufficient.
Reopening of assessment under the Income Tax Act requires fresh tangible information; reliance on previously available data constitutes a change of opinion, which is impermissible.
Reopening of assessment under section 148 requires new tangible material; reliance on previously considered facts constitutes a change of opinion, which is impermissible.
The reasons for belief that income has escaped assessment must be evident from a reading of the reasons, and re-opening of an assessment must be based on the Assessing Officer's own satisfaction.
Taxation - Escapement of assessment - Assessee had disclosed all material facts truly and fully for assessment of income for year under consideration. In other words there was no failure to disclose ....
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